People with PPR with more than one bank must declare that they will not withdraw more than the allowed monthly amount (an IAS), a limit that applies to repayments that are not intended to pay the home loan.
The need for this statement is contained in a circular issued by the Tributary and Customs Authority (AT), on the order of the Secretary of State for Taxation, Nuno Santos Félix, which clarifies the conditions for early redemption, without penalty, of amounts applied in retirement savings plans ( PPR), education savings plans (PPE) and pension/education savings plans (PPR/E), as provided for in the exceptional regime in force until December 31, 2023.
“When requesting reimbursement from the relevant financial institution(s), the taxpayer must certify that the amount reimbursed (separately or together with other policies) does not exceed the monthly limit [valor do Indexante de Apoios Sociais — IAS] defined in paragraph 1 of Article 6 of Law No. 19/2022 of October 21”, refers to the AT document.
The same document clarifies that redemptions made since the entry into force of the aforementioned law — which, in terms of early redemption of PPRs, came into effect from October 1, 2022 –, until the date of this order [conhecido a 07 de fevereiro] “do not” fall under the obligation to declare.
The possibility of early redemptions of PPR, PPE and PPR/E without the penalties that usually accompany them (such as the repayment of the IRS tax break) was originally provided for in the law published last October, which contemplates several measures to mitigate the impact of rising inflation, which has been reinforced in the state budget for 2023 (OE2023).
For example, the first version (which entered into force in October) allows early repayment by the participants of these plans, without penalty up to the monthly limit of the IAS and for cash payments until September 30, 2023.
posterior, with OE2023, early access to values applied in PPR for home loan payment is now allowed, without penalty, regardless of the amount surrendered and the date of entry into the savings account.
For situations where the monthly amount is set at a maximum of an IAS (which is set at 480.43 euros in 2023), the Secretary of State’s message states that, as an official source at the Ministry of Finance, Lusa already replied that that monthly limit “is determined by the taxpayer and not by the policy or financial institution under which any of the relevant savings products are subscribed”.
In other words, a person who has subscribed to PPR with two different banks, for example, can only withdraw the equivalent of 480 euros per month between the two and will have to make a statement to the bank confirming that he has exceeded this limit. .
It should also be noted that prepayments for the payment of the home loan (amortization or monthly installment) are cumulative with prepayments for other purposes – and in this second case limited to the aforementioned IAS.
In this way, and as emphasized in the AT information, “taxpayers will be able to: repay monthly amounts up to the IAS limit” and at the same time request “partial or full repayment of the amounts invested for the ‘payment of contract loans, mortgage-backed loans on real estate intended for own and permanent residence of the participant, as well as repayment terms for the construction or improvement of real estate for own and permanent housing, and supplies to housing cooperatives in permanent own housing solutions'”.
The Tax Benefit Statute grants an IRS benefit equal to 20% of the amounts invested in the PPR up to a limit of 400 euros per taxpayer (if the taxpayer is up to 35 years old), 350 euros (between 35 and 50 years old) and 300 euros (over 50 years old).
“The fulfillment of the benefit (…) is without effect, and the amounts withheld must be added to the IRS collection for annual verification of facts, if any income is awarded to the participants or if the certificates are repaid. granted, except in the event of the subscriber’s death or when at least five years have passed from the respective delivery and in one of the situations defined by law,” the EBF states.
This penalty for early repayments will expire in 2023.
Source: DN
