More money in salaries and pensions starting in July – The Economy

Nuno Félix exemplifies this: “So far, an increase in gross income by one euro can cause the taxpayer to take a step forward and take less than he already received before the increase.” With this change, the administrator ensures that “an increase in gross income always corresponds to an increase in net income”. This new withholding net will mean that only income that causes the taxpayer to move into the new band will be taxed at that higher rate. Example: For a single person earning up to €819 per month, the rate to be applied is 4%. If this worker is increased by €10, his entire income will be subject to a 7% retention rate. With the new model, up to €819 will continue to be held at 4%, and only the remaining ten are subject to a 7% retention rate.

All incomes will benefit, but those earning up to €1,200 in total will have a greater tax advantage. The medal is reversed into the state account. “There will be fewer refunds, because there will be a rounding up of the tax because of the withholding tax,” Nuno Felix adds.

Announced upon submission of the State Budget for 2023, and with an order in December 2022, “the Government warned economic agents well in advance of preparing for the application, in 2023, of these two schedules,” said the Secretary of State for Taxes. However, without prejudice to the specific adjustments, the government wants, starting in 2024, to apply only one schedule throughout the fiscal year.

And also

vigilant government
State Secretary for Taxation Nuno Felix says the economic agents are ready to apply the new scales, but are asking taxpayers to pay attention “in order to verify that deductions from the monthly income for July have indeed been made in accordance with the new model”.

Censorship
The IRS will pay attention to the withholdings that are submitted each month by businesses in order to validate the new withholding form.

Deco Protestant creates
Deco Proteste provides a simulator for calculating the net salary for the second semester. He states that in addition to income, “the calculation of the net salary takes into account the worker’s marital status, place of residence, the number of taxpayers in the family taking deductions and the number of dependents.”