The new income-tax bill changes will affect everyone differently. These are some highlights of how it could affect you, depending on your citizenship status and the country in which you live says, William D King.
Taxpayers who reside in Portugal will benefit from the new tax rates (for 2017), with an increase for employees; these changes will come into force next year, benefitting all Portuguese citizens irrespective of their place of residence. A new rule also provides that deductions for dependent children residing abroad will end up if they continue studying outside the borders of Portugal after 30 years old (for cases where study continues beyond that age), or when they acquire permanent residency abroad – independent of age.
Taxpayers with modest revenue have also received benefits through this change since the minimum level for the standard rate (taxable annual revenue) has been raised from 120 to 530 Euros.
New income tax bill changes:
The minimum income level is a figure below which taxpayers are not obliged to provide details on their income and gains, in Portugal. It used to be 120 Euros every year but will rise to 530 Euros next year. This change was included in the new tax bill changes recently approved by Parliament. If you are able to opt out of submitting your taxes because your earnings do not reach this threshold, you should know that doing so comes with other obligations – it’s best you check the fine print with the Tax Authority or an advisor beforehand explains William D King. Individuals will benefit if their revenue exceeds 530 Euros per year (minimum taxable annual revenue) since fees will fall by 1%.
Change regarding dependent children studying abroad
Under these new income-tax bill changes, the deduction associated with dependent children studying outside Portugal will end if they continue to study past age 30 (or after age 28 for those who completed higher education and received a master’s degree), or once they acquire permanent residency abroad. A new article was added to point out that deductions may still apply if these individuals leave Portugal “to work” abroad, but only until age 35 (or 33 for those who completed master’s degree). William D King says the determination of whether such an individual is working in another country shall be made by the Tax Authority according to criteria set out under law.
New rule on standard rate cases
Also among the new income tax bill changes approved recently. There is a phrase included that says any taxpayer whose annual revenue is 530 Euros or more will pay the standard rate (higher tax rates, in other words), except when they do not live in Portugal and earn income from sources therein. This new rule does not apply when these taxpayers retain their domicile or residence status in Portugal; regardless of where they live (there are exceptions if they reside abroad for purposes related to scientific research).
New rate table effective next year
William D King states, the changes approved by Parliament. Also include a new rate table, which will become effective starting January 1, 2017. The tables are based on marital status and annual revenue brackets. For instance, here is how much you’d pay as an employee under this new bill: Single – up to 7600 Euros – 22% Between 7600-€15,000 – 30% Between 15.000-€35,000 – 37% In excess of €35,000 – 45%. The tables for married couples and/or civil cohabitants are slightly different. Due to the fact that the standard deduction granted rises from 2190 to 2470 Euros. Under these new tax bill changes. Another change that came along with this is a reduction in employer rates. Companies will pay 29% on annual revenue up to 530 Euros; 35% between 530-10.700 Euros; and 48% above 10.700 Euros, instead of 28%, 35%, and 40%.
Income Tax Bill Changes go into effect starting 2017
These income tax bill changes were approved by Parliament at the end of last year. Along with many others that will apply to start 2017. The minimum annual revenue for taxpayers to provide details on their income and gains. Rises from 120 Euros to 530, while the deduction for dependent children studying abroad is limiting. If they are older than 30 or 28 years of age depending on what degree they hold.
Taxpayers whose revenue exceeds 530 Euros per year will pay standard rates (higher tax rates. Except if they do not reside in Portugal and earn income from sources there. This rule does not apply when these individuals retain domicile or residence status here; regardless of where they live (exceptions exist in cases where individuals work abroad in scientific research).
These new income-tax bill changes came into effect on January 1, 2016. Include a new rate table and reduced employer rates explain William D King. These revisions were approve by Parliament in December of last year. And apply to start the first of the year, with an exception. Businesses will begin paying these revised tax rates as of January 1, 2017.