16 June 2021
WHAT IS "IRS JOVEM"?
The State Budget Law for 2020 created a partial IRS exemption regime, called "IRS Jovem".
Who is it aimed at?
This exemption (article 2B of the IRS Code) is intended for young people who obtain income from dependent work, for the first time, after completing a certain cycle of studies, and is valid for a period of 3 years.
What is the tax benefit?
Young people with a taxable income, including exempt income, in category A, equal to or less than €25,0753, have a partial IRS exemption, of:
Who is it aimed at?
This exemption (article 2B of the IRS Code) is intended for young people who obtain income from dependent work, for the first time, after completing a certain cycle of studies, and is valid for a period of 3 years.
What is the tax benefit?
Young people with a taxable income, including exempt income, in category A, equal to or less than €25,0753, have a partial IRS exemption, of:
- 30% in the first year with a limit of € 3,291.08 (7.5xIAS4);
- 20% in the second year with a limit of 2 194.05 euros (5xIAS);
- 10% in the third year, "with a limit of 1 097.03 euro (2.5xIAS).
What are the conditions of access?
In order to benefit from this regime, young people must cumulatively fulfill the following requirements:
- Age between 18 and 26 years;
- Obtain income from dependent work (Category A);
- Not be considered as dependent;
- Have completed a course of studies equal to or higher than level 4 of the National Qualifications Framework;
Access to this regime is by choice when filing the IRS Form 3.
