IRS changes for 2012

[PedroCruz]

This is a very short resume of the changes for the IRS in 2012 (OE2012 proposal):


Major Changes to IRS on 2012

Lunch fee
The value for ‘lunch fee’ will be lowered, so, from 2012, instead of 6,41€ / day tax-free, there will be a value of 5,55€ / day tax free

Pensions
Those values will be taxed from 4.140€. In 2011 until 6.000€ per person, is not taxed.

Health
In 2011 one can deduct 30% of all health expenses (the ones with 6% VAT). From 2012, you’ll be able to deduct only 10% with a 838€ deduction limit.

Amortization of house buying expenses
Until 2011 you can deduct both amortization and interests. From 2012 you’ll be able to deduct only the interests (the deduction will lower) and there will be cuts on the maximums.
This deduction will end (Definitely) on 2016, and the maximums will lower year after year until that date.

House rental
This deduction will also be dead until 2018. In 2012 the amount to deduct will be 15% with a limit of 591€

Limit of the sum of Health, Education, elderly-homes, bank amortization
All of them together will have a second limit, and it can’t be exceeded. From 0 to 7.410€ taxable salary, there’s no limit for deduction.
From 7.410€ to 66.045€ taxable salary, the maximum deductible value varies from 1.100€ to 1.250€.
From 66.045€ and above, no deductions allowed.

Expats / non residents
From UE will not have to nominate a fiscal representative (it was already decided by court of law, but now will be legislated)

Divorced couples
Will have the possibility of (both) deduct expenses with their children.

Cheers


Pedro Cruz

[paramonte]

Very good (or bad as a tax payer) thank you.

[PedroCruz]

My english is a little rusty.
If you can read Portuguese, I can send you a more detailed document.


Pedro Cruz

Originally Posted by paramonte

Very good (or bad as a tax payer) thank you.

[MrB]

Expats / non residents
From UE will not have to nominate a fiscal representative (it was already decided by court of law, but now will be legislated)

Thanks: I have heard a lawyer and estate agent in the Algarve still saying that you need a fiscal rep, even just to get your contribuente number.

[paramonte]

Easy peachy to get a número de contribuinte (NIF or fiscal number)

[Catx]

Thanks Pedro for a very useful post. Big changes ahead - that a lots of cuts at one time.

[notlongnow]

Hand over fist springs to mind....the extra 3% on this years bill (payable next year) was already stinging badly....

As a Portuguese tax payer I think our contemporaries in the UK don't know they're born in terms of austerity!

[PedroCruz]

Great that you liked Catx.
Thanks


Pedro Cruz

ps - Ill try to write about other taxes than IRS (IMI, VAT .....)

[ofilha]

Hi,

Do you happen to know if i retire in Portugal but pay my taxes in the US, will i still have to pay taxes in Portugal? Last time i read, there is an agreement between the US and Portugal that avoids double taxation. Thanks
joao coelho