According to data from the Finance Portal, the municipality of Moura did not communicate electronically to the Tax Authority (AT) to 31 of December, loses the right to this participation and all of the 5% are returned to residents.
Of total 308 Portuguese municipalities, 69%, in other words, 185, will waive part of the IRS revenue so that it can be returned to taxpayers with tax residence in the respective geographic area. That 185 authorities, 41 Cams, chose to renounce all of this participation. It should be noted that 42 local authorities decided to reduce the IRS portion, while, on the other hand, six of them increased.
That 13 remaining municipalities in the Beja district, the one that will give back the most to its citizens is Ourique, that only collects 2,5%, with the citizens benefiting from the remaining 2,5%, Mértola receives 3% and the citizens 2%, Odemira 3,5% and the citizens 1,5%, Almodovar, Alvito and Castro Verde 4% and the citizens 1%, with the rest, Aljustrel, Canyons, Beja, Cuba, Ferreira do Alentejo, Serpa and Vidigueira, to receive all of the 5%, residents do not have any benefits.
relatively 2023, the municipality of Mértola reduced the right to its participation rate in 0,25%, that with the exception of Moura who received 2,5% and the remaining residents 2,5% and that this year nothing was communicated to AT, all others maintained the same percentages in 2024
What does the law say
Every year, municipalities are entitled to a variable share of up to 5% in the IRS of its citizens, relative to income from the previous year, calculated on the respective net collection deducted from the deductions provided for by law. This participation, which appears in the Financial Regime of Local Authorities and Intermunicipal Entities, deliberation on the percentage of IRS desired by the municipality, and which must be communicated electronically by municipalities to the Tax Authority (AT) to 31 December of the previous year.
This means that if the participation rate established by the municipalities is lower than 5%, the difference goes to the benefit of the residents. If municipalities do not do so, lose the right to this participation and all of the 5% are returned to residents. The municipal IRS discount is applied to all taxpayers, that is, to those who have to pay IRS and to those who are entitled to a refund at the time of the annual IRS adjustment.
Teixeira Correia
(journalist)
