From the IRS to the ISV: here are the tax breaks for people with disabilities

BUTPeople with disabilities have access to a range of tax credits ranging from the IRS to the ISV, the do portal recalls. National Financial Education Plan – Todos Contam.

“For tax purposes, a person with a fiscally significant disability is a person who has a degree of permanent disability equal to or greater than 60%, duly certified by a medical certificate of disability due to a combination of causes“, can be read on this platform.

What tax incentives are we talking about?

IRS

For the purposes of the IRS, a portion of gross annual income earned by people with disabilities is tax deductible at the following proportion:

• 15% in cases of categories A and B (employed and self-employed);
• 10% in case of category H (pensions).

The portion of income excluded from taxation cannot exceed EUR 2,500.00 per income category.

In addition, the household has the right to deduct the following amounts from the IRS due:

• per taxpayer with a disability: 4 times the value of the Social Assistance Index (IAS);
• for each disabled dependent or disabled parent: 2.5 times the IAS value;
• per taxpayer with a disability in the Armed Forces: 5 times IFRS.

The following expenses are also deductible from the amount due to the IRS:

• 30% of all expenses related to the education and rehabilitation of the taxpayer or disabled dependents;
• 25% of all life insurance premiums;
• 25% of contributions paid to mutual associations that exclusively guarantee the risks of death, disability or retirement;
• 25% of the amount paid as expenses for houses with a total limit of 403.75 euros;
• in addition, a deduction of 4 times the value of IAS as a follow-up expense if the degree of disability is equal to or greater than 90%.

WILLOW

VAT exemption on the purchase of tricycles, wheelchairs with or without a motor, cars or mixed vehicles for the personal use of persons with disabilities, in accordance with the conditions set out in the Vehicle Code.

MUK

IUC exemption for Category B vehicles with NEDC CO2 emissions up to 180g/km or WLTP CO2 emissions up to 205g/km, or Category A and E vehicles.

The exemption can only be used by each beneficiary for one vehicle per year and cannot exceed the amount of 240 euros.

independent software vendor

Exemption from ISV ​​for vehicles intended for own use:

• people with limited mobility, over 18 years old, with a degree of disability equal to or greater than 60%;
• disabled persons in the Armed Forces with a degree of disability equal to or greater than 60%;
• people with profound multiple disabilities, with a degree of disability equal to or greater than 90%;
• persons with disabilities who move exclusively in wheelchairs, with a degree of disability equal to or greater than 60%;
• visually impaired people, with a degree of disability of 95%.

Read also: Portugal occupies the middle of the table in the EU with a tax burden of 37.6% of GDP.