The state budget for 2023 (OE2023) will strengthen the IRS Jovem tax benefit, strengthen the tax-free portion of income and its limits, in the five years in which the measure can be used.
Under the OE2023 proposal submitted by the government to parliament this Monday, workers who meet the criteria to be covered by the IRS for young people will benefit from a tax exemption on 50% of their income for the first year; 40% in the second year; 30% in the third and fourth year and 20% in the fifth year.
These three types of exemptions, in the same order, are limited to 12.5 times the value of the Social Support Index (IAS), 10 times the value of the IAS, 7.5 times the value of the IAS, and five times the value of the IAS, respectively.
“The exemption referred to in paragraph 1 is 50% in the first year, 40% in the second year, 30% in the third and fourth years and 20% in the last year, with the limits of 12.5 times the value of the IAS, 10 times the value of the IAS, 7.5 times the value of the IAS and five times the value of the IAS, respectively,” according to the budget proposal.
In the model still in effect, the aforementioned exemption from IRS is 30% in the first two years, 20% in the next two years, and 10% in the final year, with the limits of 7.5 times the Social Support value, respectively. (IAS), five times the value of the IAS and 2.5 times the value of the IAS.
It is recalled that in the 2022 state budget, the youth IRS was already the subject of several changes, with the government decreing that it should be auto-allocated, cover self-employment income, and that it should be for five years. be applied instead of the three initially planned when the measure was launched.
In addition, the age limit for opting for the regime that grants young people a partial exemption from the IRS on their income has been extended to 30 years, if the study cycle corresponds to level 8 of the National Qualification Framework (PhD).
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
