It is for each chamber to decide whether or not to apply this tax incentive. Sintra, Lisbon, Vila Nova de Gaia, Braga and Porto are the municipalities with the highest number of families with children.

861,087 are families with children who can potentially benefit from a discount on the IMI. However, this reduction in Council Tax will only apply in the chambers that decide to implement the measure, as this is not mandatory. Sintra, Lisbon, Vila Nova de Gaia, Braga and Porto are the municipalities with more families with children.

At issue is a measure introduced in the State Budget for 2015 (SB / 15) presented by the parliamentary majority PSD / CDS in order to alleviate the tax burden on families with children. According to the data provided by the Ministry of Finance the Economic Journal, the potential universe of households covered is 861,087 families. The discount varies depending on the number of children, and who has a dependent will have a reduction in the rate to 10%; for two children, the reduction is up to 15%, and in the case of three children, the reduction will be 20%. The discount allocation is automatic, that is, taxpayers do not have to ask any application.

The Tax and Customs Authority (AT) yesterday sent to the chambers information about the number of families with children, so they can make their decision, it is now up to the municipalities to do the math and look at the economic and social reality of its citizens to be able to take a resolution, said the National Association of Portuguese Municipalities? (ANMP). Finance state that “each municipality will receive the information on the number of families with one, two, three or more children, with tax residence in the respective municipality, the taxable value (VPT) associated and the value of its collection of IMI with Reference 2014 “.

Until November 30, the cameras have to report to the tax authorities of its decision. The benefit will apply in IMI to pay in 2016 from April (first installment of tax). AT send taxpayers the amount of tax payable has made with the accounts.

The Ministry of Finance explained that this measure corresponds to the transposition into IMI family quotient in IRS – where the number of children account for calculating the tax. For the Secretary of State for Fiscal Affairs, Paul Nuncio, “are met all the necessary conditions so that the greatest number of municipalities approve the application of the IMI family,” adding that the incentive is automatic “and without bureaucracy.” (Read more)

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