This is how you obtain the IRS settlement note (step by step)

Individuals seeking to obtain their IRS settlement note can access it via the Portal das Finanças, avoiding the need for in-person visits.

The Tax Authority (AT) highlighted on Facebook, “There are various situations where you may need the IRS Settlement Note – such as calculating the monthly fee for a nursery or day center, or when applying for a bank loan.”

As stated by the Finances, “this document is free and can be acquired through the Portal das Finanças.”

Watch the video and learn how to obtain the IRS settlement note (step by step)

The AT provides a step-by-step guide in the following video on obtaining the IRS settlement note via the Portal das Finanças:

What do the terms in the settlement note mean?

Are you familiar with the terms in the settlement note? Santander’s blog Salto clarifies each one. Here are 10 terms explained by the portal:

1. Global income: the total sum of all income obtained by the taxpayer. For married couples or those in a de facto union who choose joint taxation, global income includes amounts earned by both
2. Specific deductions: the amount deducted from global incomes to convert gross incomes to net incomes. Learn what they are and which specific deductions can be subtracted from incomes
3. Losses to be recovered: fiscal losses that can be offset in future taxation periods, occurring when deductible expenses exceed income, or when there are investment losses
4. Minimum subsistence deduction: the value on which some taxpayers do not pay tax. It does not apply to all taxpayers and is calculated using legally defined formulas
5. Income deductions: a tax benefit granted to those having a social share in companies where half the capital is lost, leading to a cash capital injection
6. Taxable income: the value resulting from combining income from various categories each year, after deductions and rebates. This value determines the applicable tax rate
7. Allocation of income from previous years: income amount produced in prior years to the year it was paid, if applicable
8. Exempt incomes included to determine rate: incomes exempt from taxation but included with others to determine the rate applied to taxable incomes (e.g., salaries of diplomatic and consular staff or international organizations)
9. Total income to determine rate (6 + 8 – 7): computed by adding taxable income, previous years’ incomes, and subtracting exempt incomes included for rate determination, if applicable. Otherwise, it equals taxable income
10. Family coefficient and rate: the coefficient applied to incomes. For singles, widows, or divorcees, “1” is applied. For married or de facto unions opting for joint declaration, “2” is applied. The rate is applied according to the IRS bracket of the taxable income

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