The number of IRS Jovem beneficiaries reached 73,684 taxpayers last year, more than double that recorded in 2021, with total income from dependent work amounting to $1,060 million, the Treasury Department said this Saturday.
In a statement, the custody said that, “After the IRS 2022 Earned Income Campaign is over, it concludes that 73,684 young people have benefited from the IRS Jovem, with a total covered income from dependent work of approximately $1,060 million.”.
At the same time, that amount related to business and professional income, i.e. green receipts, increased to 103 million euros, the government stressed.
According to the guardianship, the average tax benefit for these taxpayers was approximately $425 per year, and “tax costs associated with the IRS Jovem of the 2022 IRS campaign, whose declarative delivery phase ended June 30, are approximately $31 million.” .
The Treasury Department recalled that this was “the third year of application of the IRS Jovem benefit”, a measure that “aims to encourage the qualification of younger people and their integration into adult life and the labor market after completing support their studies, as well as his stay in Portugal”.
The guardian also recalled that 10,286 young people benefited from this regime in 2020, and that number rose to 37,199 in 2021.
“For the year 2022, due to the changes introduced by the state budget law for 2022, the young tax service has been extended to young taxpayers who earn professional and business income,” that is, green receipts, the ministry stressed, noting that “ the temporary application was also increased from three to five years, guaranteeing an exemption of up to 30% of wages in the first two years of work”.
So, and factoring in the changes, “the number of IRS Jovem beneficiaries grew by approximately 98.1% between 2021 and 2022”.
In addition, the 2023 state budget bill “increased the IRS exemption of income earned under IRS Jovem to 50% in the first year of operation, 40% in the second year, 30% in the third and fourth years, and 20% in the fifth year,” after also “the respective exemption limits have been increased to 12.5 times the Social Support Index (IAS) in the first year, 10 times in the second year, 7.5 times in the third and fourth years, and five times in the fifth year”, said the guardian.
These rules will be applied to 2023 income, in the 2024 IRS delivery.
Source: DN
