IRS Declaration: Who is exempt from filing?

Who is exempt from submitting the IRS declaration?  

The IRS statement delivery, starting on April 1, exempts some taxpayers from submission. According to the Tax Authority (AT), there are several exceptions provided, as reported by Notícias ao Minuto.

So, taxpayers who have obtained only the following incomes, exclusively or combined, in the year in question, are exempt from submitting the IRS:  

• Income taxed by the liberating rates provided for in article 71 of the IRS Code and do not opt, when legally allowed, for their aggregation;

• Income from employment or pensions, provided that the total amount of these incomes is equal to or less than €8,500 (€4,104 for alimony pensions) and they have not been subjected to withholding tax.

• Subsidies or grants under the Common Agricultural Policy (CAP) of an annual amount lower than four times the value of IAS, provided that they only receive other income taxed at the withholding tax rates provided for in Article 71 of the IRS Code and income from dependent employment or pensions that do not exceed, individually or cumulatively, €4,104; 

• Isolated acts whose annual amount is less than four times the value of the IAS, provided they do not earn other income or only earn income taxed at the rates provided for in Article 71 of the IRS Code (withholding tax rates).

AT underlines that, "however, the above does not apply in situations where taxpayers (i) opt for joint taxation, (ii) receive temporary and life annuities that are not intended for the payment of pensions, (iii) receive income in kind, (iv) receive alimony income (eligible under article 72, paragraph 9 of the IRS Code) exceeding €4,104.00".

Read also: A guide to better understand IRS

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