Funchal Municipal Council (CMF) has issued a statement reminding the public that it is giving up the 3% rate of the variable IRS participation to which it is entitled, as approved in the municipal budget.
In this regard, the municipality points out that the IRS refund for 2023 for the residents of Funchal is 3%, which corresponds to more than 4.6 million euros. As this is a municipal benefit, the measure is automatically applied by the Tax Authority (AT).
Trying to illustrate, the CMF gives the following example: a holder with an annual income of between 20,000 and 40,000 euros will have a municipal benefit of between 38 and 210 euros.
For two people, with one dependent, with annual incomes between 40,000 and 80,000 euros, the municipal benefit varies between 68 and 413 euros, and with two dependents between 45 and 390 euros.
“Due to the change in the withholding tax model, which meant that taxpayers deducted less and had a higher income, the municipal benefit will be slightly lower compared to last year’s figures, since the deduction from the collection was lower,” he explains.
The mayor, Cristina Pedra, recalls that the return of this income to families has been progressive since 2022, with the municipal benefit set at 2.5%, which meant a return of 3.5 million euros.
This year, he said, the municipal executive decided to bring forward the total return of the 5%, amounting to 7.7 million euros and which will be applied to the personal income tax to be paid in 2025, reaching 23.5 million euros, thus fulfilling the commitment made at the beginning of the mandate in October 2021.
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