PDF Notes: 02_1_Fiscalidade_Cap_2_1_IRS

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    What is the purpose of the Imposto sobre o Rendimento das Pessoas Singulares (IRS)?

    Aims to reduce inequalities and is progressive based on family needs and income.

    What are the main categories of income under IRS?

    Categories A (dependent work), B (business and professional income), E (capital income), F (property income), G (capital gains), H (pensions).

    How does the IRS differ for residents and non-residents?

    Residents are taxed on worldwide income; non-residents are taxed only on Portuguese income.

    What is the minimum non-taxable income in IRS?

    The minimum non-taxable income is set at €4,587.09.

    What is the significance of the 'quociente familiar' in IRS?

    It allows for tax calculation based on half the family income for joint taxation.

    What are the tax rates for income exceeding €80,000?

    A 2.5% rate applies to income between €80,000 and €250,000; 5% for income above €250,000.

    What deductions are allowed for health expenses in IRS?

    10% of health expenses, up to twice the IAS, can be deducted.

    What is the tax treatment for capital gains from real estate?

    50% of the gains are taxable for residents; non-residents face a 28% tax.

    What is the tax rate for pensions under IRS?

    Pensions are subject to the same progressive rates as other income.

    What happens if a taxpayer does not file a declaration?

    They may be exempt if their income is below certain thresholds.

    What is the role of the substitute taxpayer in IRS?

    They are responsible for withholding and remitting taxes on behalf of the taxpayer.

    What is the consequence of exceeding the minimum existence threshold?

    Tax benefits decrease as income exceeds the threshold.

    What is the process for calculating IRS?

    Calculate gross income, subtract specific deductions, determine taxable income, apply rates, and subtract withholdings.

    What are the implications of dual taxation?

    Taxpayers may claim deductions for taxes paid abroad under certain conditions.

    What is the significance of the IRS Code articles 99 to 101?

    They outline the rules for withholding tax on various income types.

    What is the impact of the 1989 tax reform on IRS?

    It introduced a unified and progressive tax system replacing previous tax structures.

    How are losses treated in IRS?

    Losses can be carried forward to offset future taxable income within specified limits.

    What is the tax treatment for income from capital gains on crypto-assets?

    Gains from crypto-assets held for over a year are exempt from taxation.

    What are the requirements for tax deductions for dependents?

    Dependents must meet age and income criteria to qualify for deductions.

    What is the tax rate for business income under IRS?

    Business income is generally taxed at a flat rate of 25% or 11.5% depending on the nature of the income.

    What is the significance of the IRS tax tables?

    They determine the withholding tax rates based on income and personal circumstances.