Knowledge

José Pedroso de Melo, Of Counsel in the Tax practice at TELLES, comments on aspects related to the new measures approved for the 2023 State Budget, to Jornal Económico.

Regarding the new incentive to capitalization related to the discussion around the transversal reduction or not of the IRC, TELLES' tax lawyer emphasizes, "I fear that the set of requirements that the law establishes for obtaining the benefit may come to empty the impact of the measure", calling for a parallel reduction in contributions paid by companies to Social Security, "which are the biggest disincentive to wage increases."

With regard to families, there are several measures foreseen in the OE2023, also thinking about the current inflation scenario, which according to José Pedroso de Melo the "most emblematic" are "the reinforcement of the Young IRS - the tax exemption foreseen in this scope rises from 30% to 50%, in the first year of application of the regime -, the update of the IRS levels - by 5.1%, that is, in line with the reference for the increase of wages signed in the Social Dialogue between the Government , the bosses and UGT - and the reformulation of the minimum of existence”. However, he emphasizes that "families should be aware that, with this model (change in withholding tax), they will not be able to count on the annual IRS reimbursement bonus."

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