Insurance related Tax credits
Portuguese Tax credits
Other than deductions from the assessment basis in respect of tax incentives, payments
on account of tax and amounts withheld at source for taxation purposes relating to the
same tax period, there shall also be allowed as deductions the amounts mentioned below.
In relation to deductions provided for under Article 78 (1) of IRS
Code, the taxable persons may not obtain income net of tax lower than their remaining
income if their taxable income would correspond to the highest bracket immediately
below. Deductions provided for under paragraph (1) of the above mentioned article
shall only apply to taxable persons resident in Portuguese territory. (Amendment by the
Law 64/2008 of 5 December took effect from 1 January 2008.)
| Type of Deduction |
% of Deduction |
Maximum limit |
| Life and personal accident
insurance premiums
concerning the taxpayer
and each dependant. |
25%
| - € 64 for each taxpayer, unmarried or legally separated from
bed and board
or
- € 128 for each taxpayer, married or not legally separated from
bed and board.
|
| Life insurance premiums
where taxpayers or disabled
dependants appears
as first beneficiary thereof |
25% |
- 15 per cent of the IRS taxable amount the IRS taxable amount. |
Health insurance premiums
concerning taxpayers and
dependants
|
30%
|
- € 84 for each taxpayer, unmarried or legally separated from
bed and board
or
- € 168 for each taxpayer, married or not legally separated from
bed and board.
For each dependant in charge, the above mentioned thresholds
shall increase up to € 42.
|
| HEALTH EXPENSES
- of taxable person and
his household;
- of taxable person’s
ascendants and collaterals
to the 3rd degree,
earning an income
no higher than
the minimum national
wage and living in
joint economy |
30%
Without limit |
- Acquisition of goods and services directly
connected with health expenses which are
exempted from VAT, even in case of waiving
of tax exemption, or subject to a reduced
rate of 5 per cent, as well as interest
on debts incurred for payment thereof |
