Families with a home loan will be able to benefit from a reduction in the withholding tax rate of the IRS, the OE2023 provides, which stipulates that the measure will benefit those with a monthly income of up to 2,700 euros gross.
The measure, of voluntary entry, could benefit up to 1.4 million people and, according to government estimates, will have an impact on IRS revenues in the order of $250 million next year.
“Withholding tax on category A income in 2023 [trabalho dependente] of the IRS is reduced to the rate of the step directly below that corresponding to the monthly salary and family situation applicable to the respective income holder”refers to the bill on the state budget for 2023 (OE2023), which the government presented to the Assembly of the Republic this Monday.
To benefit from this reduction in the monthly tax payment, employees must cumulatively have a loan for permanent owner-occupied housing and earn a monthly allowance of up to 2,700 euros – the reference the government used to allocate the extraordinary aid of 125 euros that this month is paid.
In addition, families will have to inform the employer “prior to payment or availability, the possibility of reducing the withholding tax provided”, by means of a statement accompanied by “the essential elements for the verification of the above conditions, as well as such all other tax-relevant information that appears afterwards”.
This measure joins other measures the government is preparing to help families cope with the sharp rise in Euribor, the index used in more than 90% of home loans.
It should be remembered that the current tax rules regarding housing allow debtors to deduct from the IRS the corresponding 15% of the interest on the housing loan, up to a limit of 296 euros.
The OE2023 will be discussed in general in parliament on October 26 and 27, with the final global vote on the government’s proposal’s diploma on November 25.
Source: DN
