On March 6, Decree-Law no. 13/2025 and Regulatory Decree no. 2/2025 were published, amending the Personal Income Tax (PIT) Code and Regulatory Decree no. 3/2024.

Decree-Law no. 13/2025, of March 6, amended PIT Code concerning reporting obligations, seeking a balance between tax simplification and strengthening transparency and tackle tax evasion.

On the one hand, the decree eliminated the obligation to report income subject to final withholding tax that is not aggregated, as well as income not subject to PIT when exceeding € 500. This measure was motivated by the fact that such information is already communicated to the Portuguese Tax Authorities by withholding tax agents, thus avoiding duplication of information, unnecessary compliance costs for taxpayers, and administrative burdens for the Portuguese Tax Authorities.

On the other hand, the decree established mandatory reporting  of assets held in countries, territories, or regions with clearly more favorable tax regimes, as identified in Article 57(7) of the PIT Code. Therefore, taxpayers holding such assets are no longer exempt from submitting a tax return and are ineligible for automatic income tax filing.

Regulatory Decree no. 2/2025, of March 6th, amended Decree no. 3/2024, of February 21st introducing the possibility of deducting expenses related to housemaid work in cases where automatic income tax filing is used. This amendment was justified by the fact that the relevant data is transmitted to the Portuguese Tax Authorities by Social Security, aligning with the objective of tax simplification.

The amendments introduced by Decree-Law no. 13/2025 and Regulatory Decree no. 2/2025 apply to income tax returns and automatic income tax filings, respectively, for the tax years of 2024 and onwards, submitted after the entry into force of these rules.