The number of entities to which taxpayers can allocate 0.5% of their personal income tax or donate the VAT tax benefit has increased again this year, surpassing 5,000, according to the list available on the Finance Portal.
Entities applying for this IRS consignment can be chosen by the end of this month or during the process of submitting the annual tax return, which begins on April 1 and ends on June 30.
This year’s list of organizations that meet the requirements to be able to receive a portion of taxpayers’ personal income tax is made up of a total of 5,036, up from around 4,700 last year.
These entities include hundreds of associations and academies dedicated to various purposes, recreational bands, houses of the people, various social, day, parish, children’s or community centers, foundations, cooperatives, choirs, mercies or philharmonic and musical societies.
In order to be able to set aside 0.5% of the tax, the taxpayer must indicate on their tax return the TIN of the entity to which they wish to allocate that amount.
It should be noted that this consignment does not cost the taxpayer anything, nor does it mean a reduction in the refund, since the amount is taken from the tax that is handed over to the state.
Taxpayers can also ‘donate’ the tax benefit they get by deducting from their personal income tax part of the VAT paid on expenses at workshops, gyms, restaurants, hotels or hairdressers, in which case they are effectively giving away part of their tax.
The list of entities applying for the consignment can be consulted at https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/IRS/Pages/IRS_entidades_beneficiarias_consignacao.aspx.
