Employees of the Portuguese tax authority will receive 5% of the tax revenue collected through enforced collection measures, as stipulated by the Ministry of Finance in a recently published decree. This decision, confirming the maximum percentage allowed by law, was announced on Tuesday.
The decree states, “The percentage referred to in paragraph a) of number 1 of Article 5 of Decree-Law no. 335/97, of December 2, as amended by Decree-Law no. 113/2017, of September 7, is set at 5% of the amount documented in the annual statement by the director-general of the Tax and Customs Authority on January 31, 2024, with respect to 2023,” as detailed in the official document.
The revenue from the coercive collection of tax debts reached 1.294,9 million euros in 2023, marking an increase of 20.9% compared to the previous year, according to the General State Account (CGE) of last year.
This increase was primarily driven by the personal income tax (IRS), which saw a rise of 24.3%, the value-added tax (VAT) with an increase of 15.2%, and interest on late payments, which grew by 34.8%.
There was only a minor decline in the recovery of debts related to the Stamp Duty (IS) and non-deducted recoveries from payments, decreasing by 23.1% and 37.8%, respectively, equating to approximately 3.4 and 0.4 million euros.
The decree further states, “The allocation of such revenue results from the evaluation of the performance and productivity of AT services, based on the execution level of activity plans and the fulfillment of the overall defined objectives.”
The decree was signed by the Secretary of State for Fiscal Affairs, Cláudia Maria dos Reis Duarte Melo de Carvalho, on April 4, 2025.
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