September 18, 2024 | News, Tax, Tax Alert

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TAX ALERT 4 | IRS, VAT, IMI and CEAL – Tax Changes

The following laws were published on 07/08/2024 in the Official Gazette:

- A  Law No. 32/2024, which updates the values ​​of specific deductions for IRS categories A and H – This law came into force on 08/08/2024;

- A Law No. 33 / 2024, which changes the general IRS rates, reducing taxation up to the 6th bracket – This law came into force on 08/08/2024;

- A Law No. 34 / 2024, which changes the calculation of the minimum existence and adds article 68.º-B, concerning the update of the limits of the general IRS tax brackets based on the rate of variation of the gross domestic product deflator and the rate of variation of the gross domestic product per worker determined based on data published by the National Institute of Statistics (INE) – This law came into force on 08/08/2024;

- A Law No. 35 / 2024, which authorizes the Government to revoke the extraordinary contribution on properties in Local Accommodation (CEAL), as well as to revoke the setting of the ageing coefficient applicable to local accommodation establishments for the purposes of settling IMI, and to introduce changes to the IRS, altering the reinvestment regime to exclude taxation of capital gains and to create a deduction for tenants who change residence;

- A Law No. 36 / 2024, which gradually increases the deduction from the collection, for IRS purposes, related to real estate expenses – This law comes into force from 01/01/2025; and

- A Law No. 38/2024, which extends the scope of application of the reduced VAT rate to electricity consumption, amending the respective code – This law comes into force from 01/01/2025.

[This document is for information purposes only and does not dispense with the analysis of the legislation and assessment of its applicability to each specific situation. Therefore, we are not responsible for any decision made based on this information.]