Do you qualify for Youth IRS? Learn how it works.
Are you between 18 and 26 years old and already working? You may be eligible for Young IRS for five years. Find out if you meet all the requirements and what exemptions you can access next.
For questions related to credits and/or insurance, hiring or renegotiating these products, contact a credit intermediary from Poupança no Minuto here!
IRS Young: What requirements do I need to meet?
The IRS delivery starts on April 1st, but not everyone delivers in the same way: if you are up to 26 years old, you may be entitled to Young IRS, for up to five years.
Through some requirements, this regime allows young workers to have greater tax exemption.
To access Young IRS, you must meet the following requirements:
- To earn income from dependent work (category A) or professional/business activity (category B) for the first time after completing a cycle of studies equal or higher than high school;
- To be between 18 and 26 years old;
- Not be considered dependent;
- To be under 30 years old when completing a doctorate degree.
What are the fees and exemption limits?
In order to extend the part of the tax-free income for young people, the Government proposes that young people do not pay IRS during the first year of work.
Even though the maximum limit corresponds to 40 times the Social Support Index (IAS), currently at 509.26 euros, in the first year the exemption is 100%.
Pay attention to fees and limits, according to the years:
- 1st year: 100% exemption, with a limit of 40 IAS;
- 2nd year: 75% exemption, with a limit of 30 IAS;
- 3rd and 4th grades: 50% exemption, with a limit of 20 IAS;
- 5th and final year: 25% exemption, with a limit of 10 IAS.
These measures regarding the retention of IRS at the source have been in effect since January, so the Young IRS must be applied to the source retention every month on the gross salary. To do this, the employer must be informed that they will opt for the Young IRS.
If not informed, choosing not to have withholding tax, you will only feel the impact of the change when filing the 2025 IRS statement, regarding the 2024 income.
Need help with your credits and/or insurance, or want to hire new products? Poupança no Minuto provides a credit intermediation service and insurance mediation, for free. Contact us, save time, money, and avoid bureaucracy!