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The reduction of the IRS withholding tax can bring profits between 12 euros and 200 euros per year for taxpayers, announced today the Secretary of State for Tax Affairs.
“These gains will be significant. We can talk about 200 euros per year, or variations of 12 to 14 euros per year. It depends on the income of each one, it is an adjustment that is made permanently, “said António Mendonça Mendes this Tuesday.
The Secretary of State noted that the retention tables will take effect from January 2021, but that the tables will be made public in December. Then, “we can do all the simulations of the monthly net profit.”
Mendonça Mendes pointed out that this measure will make “there is less difference between the withholding tax and the tax payable.”
In the Government’s accounts, “200 million euros will be distributed in all tables” in 2021. In the last two years, the adjustment of the table has allowed a gain of “500 million euros” for taxpayers, according to the secretary of State. Adding this value to the expected value for 2021, Mendonça Mendes pointed out that “the adjustment in the withholding tables will allow” taxpayers to recover “700 million euros”.
By 2021, the government expects the Portuguese economy to grow 5.4% after a record drop of 8.5% this year.
The budget deficit is expected to reach 7.3% of GDP this year, falling to 4.3% in 2021.
On the other hand, public debt is expected to decline from 134.8% of GDP in 2020 to 130.9% by the end of next year.
The António Costa executive expects to collect 43,850 million euros in taxes in 2021, another 2,839 million euros (7% more) compared to this year’s estimate.
The taxes that most contribute to this increase are VAT and IRC with increases of 1,228 million and 1,167 million euros, respectively.
The new SO 2021 measures will have a budgetary cost of 1,947 million euros, equivalent to almost 1% of GDP.
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