{"id":115321,"date":"2022-09-28T14:56:39","date_gmt":"2022-09-28T14:56:39","guid":{"rendered":"https:\/\/edenred.pt\/uncategorized\/what-criteria-define-what-you-pay-into-the-irs\/"},"modified":"2025-01-31T12:07:42","modified_gmt":"2025-01-31T12:07:42","slug":"what-criteria-define-what-you-pay-into-the-irs","status":"publish","type":"post","link":"https:\/\/www.edenred.pt\/en\/news\/work\/what-criteria-define-what-you-pay-into-the-irs\/","title":{"rendered":"What criteria define what you pay into the IRS?"},"content":{"rendered":"\n

IRS is a reality for taxpayers in Portugal. But for many people, it is still shrouded in doubts and questions.<\/p>\n\n\n\n

How much do you pay into the IRS and why do you pay that amount? These questions may arise when you look at your pay slip or when you are analyzing a job offer, for example. <\/p>\n\n\n\n

That’s why we’re going to try to make it simple and help you understand the criteria that define the amount you pay into the IRS<\/strong>. Before that, let’s look at what the IRS actually is. <\/p>\n\n\n\n

What is IRS?<\/strong><\/strong><\/h2>\n\n\n\n

IRS refers to Personal Income Tax<\/strong>. It is a tax levied on taxpayers’ income, with a few exceptions for income that is exempt from taxation. <\/p>\n\n\n\n

IRS is a direct tax, in that it is levied directly on taxpayers’ income. And it is progressive, because the higher the income subject to tax, the higher the rate applied.<\/p>\n\n\n\n

IRS deductions made each month are calculated on the basis of the IRS tables in force<\/a>. These withholding tax tables – the tax is automatically withheld by the paying entity when the salary is processed or the amount owed to the taxpayer – indicate the rate that will be applied to your gross income.<\/p>\n\n\n\n

But what determines this rate in practice?<\/p>\n\n\n\n

Criteria that define the IRS rate<\/strong><\/strong><\/strong><\/h2>\n\n\n\n

There are a number of variables that will influence the rate levied on your income:<\/p>\n\n\n\n