The Regional Government of Madeira has confirmed it will follow the Income Tax (IRS) reduction announced by Prime Minister Luís Montenegro. This measure ensures the maintenance of a 30% fiscal differential up to the ninth tax bracket.
Regional Government President Miguel Albuquerque explained that the IRS withholding tax will be lowered, impacting salaries from November onwards. He noted that, contrary to initial forecasts, tax collection in Madeira has been increasing, attributing this to the increased financial availability of individuals due to the tax cuts.
Albuquerque believes that lower taxes can stimulate the economy, as funds not paid to the state are injected into the economic circuit. However, it is important to note that this reduction in withholding tax may result in a smaller tax refund or even an additional IRS payment when filing the annual tax return.
