Collection deductions, withholding tax and exemptions. Find out about all the IRS benefits granted to people with disabilities.
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This year, the delivery of IRS for people with disabilities does not show news. Thus, they can count on the same benefits they had in the past, namely with a set of special deductions, as well as a lower withholding tax compared to other taxpayers.
However, to have access to these tax benefits, the person must present a degree of permanent disability equal to or greater than 60%. In addition, you will have to inform the Tax and Customs Authority about your disability situation.
How to prove the status of disability?
A person with a fiscally relevant disability is considered to be one who has a degree of permanent disability, duly proven by means of a medical certificate of multipurpose disability, equal to or greater than 60%.
What is the multipurpose certificate and how to obtain it?
The medical certificate of multipurpose disability is a document that proves that the person has a disability (physical or otherwise) and that determines its degree.
To obtain it, you must go to the health center in your area of residence and request an appointment from a medical board.
If you belong to the Armed Forces, Public Security Police – PSP or National Republican Guard – GNR, it is the medical services of these entities that you should contact.
How to inform Finance of the disability situation?
With the certificate in your possession, you will also have to inform the Tax and Customs Authority of your situation of fiscally relevant deficiency, so that the benefits to which you are entitled are recognized.
To do so, you must deliver the multipurpose disability certificate to a tax office or apply online, following these steps:
- Access the Finance Portal and click on “Citizens”;
- Then select the “Services” option;
- Go through the list until you find the item “Registration Data”;
- Then choose the option “Fiscally Relevant Disability”, followed by “Deliver Request”.
After that, you must submit to the Directorate of Taxpayer Registration Services (DSRC), within 15 days, a copy of the document proving the request made on the Portal and a certified copy of the medical certificate of multipurpose disability.
Documents must be sent by post to the address: Avenida João XXI, n.º 76, 6.º piso – 1049-065 Lisboa.
Note that it is not enough, when filling out the IRS, to indicate that you are disabled and the degree of disability. In order to take advantage of the tax benefits granted to you as a person with a disability, you must send the document proving your incapacity to Finance.
The income of persons with a disability of more than 60% is partially excluded from tax. Thus, for IRS purposes, only:
- 85% of income from categories A and B (which corresponds to a 15% exemption);
- 90% of category H earnings (which corresponds to a 10% exemption).
This means that an employee or employee with a disability only pays the IRS on 85% of their gross annual income, with the remaining 15% excluded from tax.
If you are a pensioner, you pay the IRS only about 90% of what you earn annually with your retirement. The remaining 10% do not pay tax.
The taxpayer can also accumulate income from different categories. That is, a dependent worker or a pensioner can also issue green receipts and be entitled to exemptions in both categories.
However, the IRS Code defines that the portion of income excluded from taxation cannot exceed, per category of income, 2,500 euros.
In addition to the collection deductions that all taxpayers can enjoy, people with disabilities also benefit from a set of special deductions provided for in the article 87 of the IRS Code.
|By taxable person with a disability||3,800 euros||1,900 euros|
|By disabled dependent1||1,187.50 euros||1,187.50 euros|
|By disabled ascendant1||1,187.50 euros||1,187.50 euros|
|30% of education and rehabilitation expenses||Unlimited||Unlimited|
|25% of life insurance premiums and contributions
paid to mutual associations
|15% of the collection||Limit of 15% of the collection|
|Contributions paid for old-age pension||130 euros||65 euros|
|Follow-up expenses, by taxable person
and dependent, whose degree of permanent disability is
equal to or greater than 90%
|1,900 euros||1,900 euros|
(1) Disabled parent deduction applies provided that the latter lives in shared housing with the taxable person and does not earn more than the minimum pension under the general regime.
(two) As, in 2022, the value of the IAS was still 443.20 euros, the tax deductions for people with disabilities are indexed to the value of the minimum wage in 2010 (475 euros), as determined by article 98 of the Lei no. 55-A/2010dated December 31.
In addition to IRS deductions, people with disabilities also benefit from a lower withholding tax, which in practical terms means that they have more money available at the end of the month, since they deduct less from their salary or pension.
Published every year in Diário da República, along with the rest, the IRS tables for people with disabilities determine the amount of tax that they will have to deduct monthly.
When dealing with remuneration for dependent work or pensions, the rates defined therein are applied to all income (article 99.º-B of the IRS Code). See in Finance Portalthe withholding tax tables for 2022 and 2023.
In the case of green receipts or other category B income, withholding is only levied on 50% of the income, provided that it is earned by holders with disabilities or with a degree of permanent disability equal to or greater than 60%.
If the same holders obtain income from intellectual property, which benefit from the regime provided for in article 58 of the Statute of Tax Benefits (EBF), the withholding may only affect 25% of that amount (art.º 101.º-D of the CIRS).
Article originally published in July 2019. Last updated in March 2023.