Secretary of State for Tax Affairs Cláudia Reis Duarte stated that while the government remains committed to reducing income tax by two billion euros by the end of the legislative term, a new cut for 2027 is not yet guaranteed. The government confirmed that the youth income tax scheme (IRS Jovem) will continue next year, noting a fivefold increase in declarations compared to 2024.
Government stops short of guaranteeing 2027 tax cuts
Sunday, 26 July 2026AI summary
Context & Explainers
IRS Jovem is a tax benefit that provides a partial exemption on employment income for young workers aged 18 to 26 during their first five years of work. It helps young professionals retain more of their earnings by reducing their income tax (Imposto sobre o Rendimento de Pessoas Singulares) liability. As of 2024, these taxpayers are eligible for the automatic tax return system, simplifying the annual filing process.
