The Ministry of Finance announced a 50% cut to personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) withholding rates for November. The temporary reduction applies to salaries, pensions, and Christmas bonuses (subsídio de Natal) to immediately pass on tax cuts approved by parliament retroactively to January. Standard withholding rates will return in December.
Government Halves November IRS Withholding Tax Rates
Tuesday, 13 October 2026AI summary
Context & Explainers
The Christmas allowance (subsídio de Natal), commonly called the 13th month payment, is a mandatory annual bonus equal to one month of pay for salaried workers and pensioners. Portuguese law requires employers to pay this amount by December 15 each year, though some contracts split it across monthly installments. The payment is subject to standard social security contributions and personal income tax withholding.
6 sources
- Government halves IRS withholding tax for November and Christmas bonuscnnportugal.iol.pt ·
- Government reduces IRS withholding tax tables by 50% in Novembereco.sapo.pt ·
- IRS withholding tax will be only half in Novembercmjornal.pt ·
- Government decides to compensate for IRS cut only in Novemberobservador.pt ·
- IRS withholding tax rates to be halved in Novemberdn.pt ·
- Interim reduction. IRS withholding tax cut by 50% in Novemberrtp.pt ·
