Daniel Cardoso is an accountant and works at FA Accounting. With all the recent changes, it is important to explain some of them and detail their impact on the lives of taxpayers, as seen in this interview.
The Personal Income Tax (IRS) has undergone several changes. Which ones do you particularly highlight?
In recent years, the Personal Income Tax (IRS) has undergone several relevant changes. I particularly highlight the reformulation of the “IRS Jovem” (Youth IRS) regime, the update of income brackets, and the introduction of new automatic deductions, which represents a step towards simplification and tax justice.
The “IRS Jovem” was much talked about, especially because it is associated with a greater idea of savings for young people. What impact does this change truly have on the lives of those starting their professional careers?
The “IRS Jovem” gained great visibility because it is associated with promoting savings and tax relief for those starting their professional lives. This change allows for a partial tax exemption during the first five years of activity, with reductions ranging from 100% to 25% of the taxable income, up to a limit of €28,700 per year (55 x IAS). In practice, it means a stimulus for employability and significant financial help for young people, allowing for greater savings or investment capacity in education and housing.
How can a professional control the amounts of VAT to be deducted? What impact can any omission of this tax have on the taxpayer?
Regarding VAT control, it is essential for professionals—especially the self-employed—to correctly record their expenses and revenues and use certified software for issuing invoices. The omission of VAT can have severe consequences: from heavy fines to the blocking of refunds or the opening of tax inspection processes. The impact can be both financial and reputational.
The self-employed also had changes to their receipts. What has changed for this class of professionals?
Regarding the self-employed, one of the most significant changes is the automatic update of the value of Social Security contributions, based on declared quarterly income. Additionally, there has been greater integration with the e-invoice system and more rigor in classifying deductible expenses, especially with the mandatory validation of these expenses.
In your view, were these changes truly positive for the Portuguese people? Was the ultimate goal of allowing taxpayers to recover some money achieved with them?
In my opinion, the changes were globally positive: they improved the fairness of the system, reduced some burdens for those with lower incomes or at the beginning of their careers, and brought greater transparency. However, the real impact on taxpayers’ pockets depends on multiple factors, namely correct tax organization and compliance with declarative obligations.
Were all these changes noticed by taxpayers? Did FA Accounting see a reflection of these changes, with an increase in the number of people who contacted them with questions about the new rules?
At FA Accounting, we noticed a significant increase in the number of requests for clarification, especially from young workers and self-employed professionals. There was a clear demand for personalized support, which shows that, despite the improvements, the communication of tax changes is still not sufficiently clear for all taxpayers. These changes, therefore, require continuous adaptation—both on the part of accounting professionals and the taxpayers themselves.
SOURCE: VALOR MAGAZINE
Date: 05/06/2025