In Portugal, a new personal income tax system has been introduced that promises to benefit more than 3 million taxpayers. The new system has eliminated the annual tax return filing process, as well as the need to make advance payments during the year, and will provide Portuguese taxpayers with a direct, automatic and continuous tax assessment.
Under the new system, individuals will be taxed based on their total annual income and will no longer need to file a tax return. Instead, their taxes will be automatically and continuously assessed based on data provided by their employer, the Social Security Institute, and other government agencies. This data will be used to calculate the taxpayer’s total annual income and the amount of tax to be paid.
The new system is expected to reduce the administrative burden on taxpayers and make the tax process easier to understand and comply with. It is also expected to improve the efficiency and accuracy of the tax assessment process, as well as reduce the potential for tax fraud.
The new system is expected to benefit more than 3 million Portuguese taxpayers, who will no longer need to worry about filing tax returns or making advance payments. Instead, they will be able to rest assured that their taxes are being automatically and continuously assessed in a fair and accurate way.
