Find out how you can take advantage of PPR tax benefits through the end of the year – Executive Summary

The year is coming to an end, but there is still time to take advantage of the tax benefits if you invest in a Retirement Savings Plan (PPR) in 2023.

PPR is a financial investment product designed to help people save and accumulate financial resources for the future of their lives. This allows you to set up a retirement supplement or ensure a financial cushion for any unforeseen events in the future.

“No matter how far away retirement may seem, it’s important to think about the future and ensure our well-being when we’re not living an active professional life. Investing in a PRR can be a good strategy, especially since there are tax advantages that we often don’t take into account. The current economic situation may prompt many people to postpone this decision, thus hurting their financial situation later, says Nuno Leal, member of the Executive Committee responsible for investments at Doutor Finances.

One of the advantages of PPR is that 20% of the amounts applied each year can be deducted from the IRS’s collection, which makes it possible to save the amount of tax due and can even make the difference between having to pay or being paid.

The maximum deduction amount varies depending on age and the amount applied, explains the Dr. Finance specialist. These deductions range from a maximum of €300 for people aged 50 or over, to €400 for people under 35. So, understand the amounts you need to invest to access these tax benefits from the IRS.

The value of tax deductions is also affected by your taxable income and the total value of deductions you actually took during the year. It is possible to find out how much you have already deducted in each category by reviewing the electronic invoice.

However, be careful, if you want to request a PPR refund outside the legal terms, you will have to return the amounts that were deducted, plus a penalty of 10% for each year passed.