The submission period for income tax returns is approaching, prompting clarification of the term “automatic IRS,” which refers to the automatic income tax return. This includes a provisional declaration for each tax regime, whether separate or joint, along with respective settlement statements, as detailed by the Tax Authority (AT).
The AT explains that the provisional declaration is “pre-filled based on data—income and expenses—reported by third parties and the family unit’s information.” It becomes definitive on the date when these elements are confirmed, which should occur within the period from April 1 to June 30, according to the AT’s guidelines.
Who is eligible for automatic IRS?
Eligibility for automated IRS applies to taxpayers meeting the following conditions:
- Receiving income from dependent work (category A), excluding gratuities not awarded by the employer;
- Receiving pension income (category H), excluding alimony payments;
- Receiving income from service provisions (category B), provided the following criteria are simultaneously met:
- 1) Coverage under the simplified taxation regime;
- 2) Registration in the AT’s database as of December 31, 2024, for the exclusive exercise of activities listed in the Activities Table, excluding the activity coded 1519 for “Other service providers”;
- 3) All invoices, invoice-receipts, and receipts must be issued exclusively through the Tax Authority’s Portal using the Electronic Receipt System – SIRE.
- Receiving income taxed by withholding tax rates without opting for aggregation;
- Earning income only in Portugal;
- Residing in Portugal throughout the entire year;
- Not holding non-habitual resident (RNH) status;
- Not availing of tax benefits, with specific exemptions including deductions for IRS contributions applied in individual capitalisation accounts, retirement savings plans (PPR), donations, and provided there are no unresolved debts as of December 31, 2024;
- Not having paid alimony;
- Not eligible for deductions relating to dependents living with the taxpayer;
- Not required to declare previously enjoyed tax benefits that now need to be repaid.
Additionally, there are no deductions for:
- People with disabilities;
- International double taxation;
- Additional municipal property tax (AIMI).
