Friday, January 13, 2017

Refer to the tables of retention of the surcharge – Jornal de Negócios – Portugal

The new tables of withholding at source, surcharge extraordinary IRS will no longer apply this year for those who earn up to 1.705 euros of gross income from salary or pension, or in the case of couples where only one has income, up to 2.925 euros gross monthly.

These levels on, for those who fit in with the 2nd, 3rd and 4th levels, the monthly withholding will vary depending on the gross income monthly, but for a number of months less than up here.

those Who fall in the 2nd tier of income gross ranging between 1.705 and 3.094 euros, the retention rate is 1.75% until June. This month onwards, the retention drops, which will give rise to an increase of disposable income.

Already the last two levels, 5.862 euros gross monthly before, will have to make deductions monthly until November. In the last month of the year, it falls.

These levels are the result of an update to the rate of 1.3%, which considers a dual upgrade for the price increase registered in 2015 and 2016.

How to read the tables:

There are two tables of retention in the source: a for singles and for married couples in which the two elements of the household have income; and for married couples in which only one of the spouses has income.

The tables do not differentiate in function of the type of income: whether they are pensioners, whether they are workers dependent, the retention rates are equal. What counts is the family situation of the couple. Also do not differentiate in function of the number of children: such as the case here, the setting relating to the children (that are worth a discount of 2.5% of the value of the minimum wage) is made in the final settlement.


The fees, depending on the level of income, apply on the difference between the gross income, discounts for Social Security, withholding personal income tax and the national minimum wage (557 euro).


practical Example:

Imagine that you are married, your spouse also works, and earns 1500 euros gross per month. Up here it was required to withhold 1%, while henceforth you will no longer discount, which will lead to an increase of net income.

Another example, now with calculations to the mix. Imagine that you have 2,000 euros gross, is married, the other spouse also has income and has no children. The retention rate that corresponds to it is 1.75% and it is estimated the about the difference between the gross income, discounts for Social Security, withholding personal income tax and the national minimum wage (557 euro).

Formalizing, corresponds to 1.75% x (2,000 euros gross – 220 euros of Social Security – 470 euros IRS – 557 euros in the minimum wage), that is, you retain to 1.75% about 753 euros, that is, 13,2 euros a month.

Note: The membership dues of the worker to the Social Security of 11%

the value of The monthly withholding from the IRS is obtained from the tables of retention of 2017, which vary depending on the composition of the household and its level and type of income.

Questions and Answers

This retention schedule is better or worse than the 2016?

retention rates are more favourable in two ways. On the one hand, because they disappear for a very significant number of taxpayers, which has translation in the total elimination of the withholding tax rate for those who have up to 1.705 euros gross per month (for single or married two holders).

on the other hand, because the yield ranges were updated in 1.3 per cent, which means that those of you who have increases salarias or pension up to this level will not retain more in surcharges for the sake of this effect.

These are definitive figures that will I pay?

No. One thing is the retention in the source, otherwise the surcharge to pay. As in the case of the IRS “normal”, the withholding tax is an approximation of what taxpayers will have to pay for the whole year, upon the assumption of certain hypotheses. But its formula is distinct from that which dictates the calculation of the surcharge. Therefore, only here, there are always the hits.


in addition, this retention rate only applies to income from dependent employment and pensions, so that, if the taxpayer has other income, in the end, you will have to pay a surcharge on top. That is, it is possible that the withholding tax is calculated on the basis of a ranking, but in the end the taxpayer to pay a surcharge of one step above.

These rates will apply already to the wages and pensions of January?

Yes, but there are entities that have processed salaries and pensions. In this case, it may happen that only in February have these rates reflected. To be so in 2018, when the settlement of the IRS in 2017, will be done the correct and the surcharge eventually retained the more will be returned.

How are the rates to “normal” retention of the IRS?

I Also have already been published and have suffered only an update of 0.8%, to ensure that anyone who has updates on salaries and pensions up to 0.8% and is at the limit of the range, it does not jump to the next. You can query these tables here.

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