The Code of Tax Procedure and Process (CPPT) allows taxpayers to submit a replacement declaration “within 30 days following the end of the legal deadline” if they identify a “factual or legal error” in the previously submitted declaration.
This may occur if a young person realizes their submitted declaration was incorrect because they did not choose the IRS Jovem despite meeting the access criteria.
Since the legal deadline for submitting IRS declarations was June 30, the deadline to submit the replacement declaration for this reason ends today.
When the replacement file is submitted within the legal deadline, which in this case would have had to occur between April 1 and June 30, taxpayers are not required to pay any fine. However, the same might apply for those doing so now, immediately following the deadline.
The General Regime for Tax Offenses (RGIT) provides that the Tax and Customs Authority (AT) may choose not to apply a fine if an offense does not result in an “effective detriment to tax revenue” and if the “committed fault” is regularized. For this to occur, the person must not have committed any tax offense or fiscal crime (in a process with a final judgment) within the previous five years, nor have been exempted from paying a fine or benefitted from a reduction.
IRS Jovem is a tax incentive that offers reduced taxation on income earned during the initial working years of young people.
To benefit from these rules, citizens must request access to the tax regime from AT when they submit the declaration.
An employee (with income in category A) should select this option in sections 4A and 4F of Annex A.
If the worker provides services with green receipts (as a self-employed worker with income in category B), they must fill out section 3E of Annex B.
In addition to the general legislation allowing the submission of a replacement declaration for an error in the original file, the IRS Code also safeguards the possibility of submitting a new replacement declaration for taxpayers covered by Automatic IRS who neither confirmed the declaration nor submitted an alternative one by the deadline.
If a taxpayer does not take any of these actions, AT converts the provisional declaration into a definitive one and considers the IRS settlement as complete. Subsequently, it is possible to submit a replacement declaration within the subsequent 30 days “without any penalty”.
This safeguard also applies to young people who did not confirm the automatic declaration and, therefore, did not opt for this special taxation regime.
The IRS Jovem rules were revised in the last State Budget to include workers up to 35 years old, but the new rules do not apply to the IRS declared in 2025 (2024 IRS), only to income earned from 2025 onwards.
The 2024 IRS Jovem covers young workers between 18 and 26 years old who no longer belong to their parents’ household.
It is also necessary to have completed a cycle of studies (secondary, vocational secondary, bachelor’s, or master’s). If a young person holds a doctorate, they can join up to 30 years of age.
The tax benefit operates through an exclusion of IRS on part of the income. A portion is not subject to tax, with this percentage varying according to the year of application of the regime.
In the first year, the entire income is excluded from taxation (the exemption is 100%). In the second year, the exemption is 75% (IRS applies to 25% of the income). In the third and fourth years, the exemption is 50% (tax applies to half of the income). In the fifth year, the exemption is 25% (IRS applies to 75% of the income). Simultaneously, a cap applies to the amount excluded, with this limit varying from year to year.
