[ad_1]
The measure, which will be adopted in the Budget for 2021, only allows a temporary reduction.
The Government will prepare a slight IRS relief from households in 2021 by reducing withholding taxes, but this is only a temporary measure. This “account” will eventually emerge in 2022, when the tax authorities settle the prior year’s tax.
“The measure appears to be designed to reduce only the withholding of taxes on account, but not the IRS rates or tranches, nor the withholding taxes that are final. In other words, the tax burden on households would remain the same,” he says Inspector Jaime Esteves to JN / Dinheiro Vivo. “It would only reduce the” forced loan “that families make to the State free of charge every month to be reimbursed, without interest, in the following year,” he concludes.
Inspector Anabela Silva, from EY, is also in this analysis of the measure advanced by “Expresso”. “This is a financial effect. It increases the monthly net income, but it has no impact on the final tax payable, which remains exactly the same,” he indicates.
“Technically, there is not an increase in the net income of the families, but an income transfer that would occur due to the return from the IRS in 2022 to a lower tax withholding in 2021,” adds Luís León, partner at Deloitte, to see the fact as positive the measure “approximates the amount withheld to the value of the final tax”, even temporarily.
Bill arrives in 2022
Anabela Silva recalls that Finanzas could have chosen to adjust the withholding tables for this year, “fully reflecting the reduction of the IRS resulting from the division in the levels verified from 2017 to 2018.”
The advance to the State is then settled in the year following the IRS payment, when taxpayers file the annual return. “If no other changes are foreseen in the OE bill for an effective reduction of the IRS, the update of the withholding tables may result in a lower refund, or even in the payment” of the tax, warns Anabela Silva. “The invoice will arrive in 2022, in the sense that the reimbursement to which families are accustomed will necessarily be less, or the amount to be paid will be greater, when this happens.” v
[ad_2]
