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The minimum value of existence, up to which people do not pay taxes, is expected to increase by 100 euros in 2021, according to a proposal to modify the State Budget for next year presented by the socialist parliamentary group. The value currently in force, set for 2020, is 9,215.01 euros per year and, therefore, the equivalent of 665.3 euros for each of the 14 months of remuneration must be increased to 9,315.01 euros.
The minimum existence is, in practice, a kind of minimum income after taxes. That is, as long as the after-tax income is below the existence minimum, the state abdicates the IRS until the income reaches this threshold. Since 2018, the minimum value of existence has ceased to be fixed (8,500 euros) and has become dependent on IAS: the law establishes that this exemption from the IRS corresponds to 1.5 IAS multiplied by 14 months.
This year, as inflation will be close to zero, and since the IAS will not change, the PS proposes an exceptional increase:To protect household income, in the IRS payable in the year 2021, corresponding to the income obtained in 2020, for the amount referred to in section 1 of article 70 of the IRS Code, an exceptional increase of 100 euros, returning to the Internal Revenue Service for the year 2021, the application of the formula contained in said article ”.
The socialist parliamentary leader, Ana Catarina Mendes, who presented the proposed changes to the PS at a press conference, guaranteed that with this increase,tens of thousands of families will stop paying the IRS. “
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