what is it and who is covered?

Find out what the Automatic IRS is and who can benefit from the automatic declaration of income.

Since its introduction in 2017, the Automatic IRS has been gradually extended to more taxpayers.

Currently, it already covers self-employed workers under the simplified regime who carry out service activities provided for in the table referred to in article 151 of the IRS Code.

However, for the time being, it leaves out the self-employed registered in the “Other service providers” category, which includes, for example, local accommodation.

Know, then, the main rules of automatic declaration.

What is Automatic IRS?

Automatic IRS is the expression used to designate the automatic declaration of income. To pre-fill in this provisional declaration, the Tax Authority uses data (income and expenses) communicated to them by third parties.

The automatic declaration takes into account the personal and family elements communicated by the taxpayer until February 15 or the personal elements declared in the year before the tax (in this case 2021). In the absence of the declaration for that year, AT assumes by default that the taxpayer is not married or in a de facto relationship and without dependents.

The provisional income statement becomes definitive on the date on which the taxpayer confirms his elements, which should happen between April 1 and June 30. If not, at the end of this period the AT automatically converts it into a final declaration.

Who is covered by the Automatic IRS?

You self-employed workers under the simplified regime who exclusively carry out service provision activities provided for in the table referred to in the Article 151.º IRS Code (with the exception of those registered in the category with code 1519 “Other service providers”).

In addition to these, all taxpayers who, in 2021, only earned:

• Income from work for others (category A) or of pensionsexcept alimony (category H);
• Income that is taxed at the rates provided for in article 71 of the IRS Codeif they do not opt ​​for its inclusion.

Remember that, in 2018, this automatism started to include families with children and the taxpayers with tax benefits resulting from donations communicated to the Tax and Customs Authority through an official declaration, in this case the Model 25.

In 2019, the Automatic IRS became available to taxpayers with investments in Retirement Savings Plans (PPR).

Other requirements

To benefit from the Automatic IRS, it is necessary even if the taxpayer is resident in Portugal all year round It is has only obtained income in national territory. In addition, you cannot have the status of Non-Habitual Resident, nor enjoy tax benefits, except those related to donations (patronage regime) or PPR.

To have Automatic IRS too cannot have paid alimonyto have deductions for ascendantsnor have income increases due to non-compliance with conditions relating to tax benefits.

Finally, you can only take advantage of the automatic declaration who has no debts to the Tax Authorities or Social Security.

Who is left out?

For now, the independent workers of the simplified regime registered as “other service providers”, still cannot take advantage of the automatic declaration. The same happens if you combine independent activity with work for others. Those who have organized accounting, for now, are also left out.

Taxpayers who obtain capital income (category E), property income (category F) and equity increments (category G).

What if it is not validating the automatic declaration?

The data that Finance pre-populates in your automatic tax return is based on other information that you have previously communicated (or that have been communicated to them by third parties). Even so, continues to have the obligation to validate all elements they are there to ensure that the statement does not go out of date or with errors.

This is what can happen, for example, if your personal and family situation changed in 2022 (you got married or started living in a de facto relationship or if you had another child) and you did not communicate these changes on the Finance Portal by February 15 .

In this case, the provisional declaration that the AT proposes to you will not reflect your situation on December 31, 2022, so you must dispense with the automatic declaration and deliver Model 3, under normal terms.

When the taxpayer does not confirm the elements of his Automatic IRS by June 30th, or submit the Model 3 declaration as an alternative, the system will assume that the information in the automatic declaration is correct, automatically converting it into definitive.

The same in relation to the corresponding provisional settlement, which is converted into final settlement, with no prior hearing of the taxpayer. After that, you still have 30 days to file a replacement declaration, without any penalty.