People with PPR in more than one bank must declare that they do not withdraw more than the allowed monthly amount (one IAS), a limit applicable to redemptions that are not intended to pay the home loan.
The need for this declaration is included in a circular issued by the Tax and Customs Authority (AT), following an order from the Secretary of State for Finance, Nuno Santos Félix, which clarifies the conditions for early redemption, without penalty, of amounts applied in retirement savings plans (PPR), education savings plans (PPE) and retirement/education savings plans (PPR/E), as provided for in the exceptional regime in force until December 31. December 2023.
“At the time of requesting reimbursement from the financial institution(s) in question, taxpayers must declare that the redeemed amount (alone or together with other policies) does not exceed the monthly limit [valor do Indexante de Apoios Sociais — IAS] defined in section 1 of article 6 of Law No. 19/2022, of October 21”, the AT document refers to.
The same document clarifies that the amortizations made since the entry into force of the aforementioned law —which, in terms of early repayment of PPR, took effect as of October 1, 2022—, until the date of this order [conhecido a 07 de fevereiro] “are not” covered by the obligation to deliver the declaration.
The possibility of early redemption of PPR, PPE and PPR/E without the sanctions that are normally associated with them (such as the return of the IRS tax benefit) was initially provided for in the law published in October of last year, which contemplates several measures to mitigate the impact of the increase in inflation, having been reinforced in the General State Budget for 2023 (OE2023).
Thus, the initial version (which entered into force in October) allows early repayment by participants of these planswithout penalty up to the monthly limit of the IAS and for cash deliveries made until September 30, 2023.
Subsequently, with OE2023, early access to the values applied in PPR for the payment of the housing loan was allowed, without penalty regardless of the amount redeemed and the date of subscription of the savings account.
In the case of situations in which the monthly amount is set at up to one IAS (which in 2023 is set at 480.43 euros), the office of the Secretary of State specifies that, as an official source of the Ministry of Finance, he had already responded to Lusa, that this monthly limit “is determined by the taxpayer and not by the policy or financial entity in which one of the savings products in question has been subscribed.”
In other words, a person who has subscribed PPR with two different banks, for example, You can only withdraw between the two the equivalent of 480 euros per month and you will have to do a statement from the bank that it is respecting this limit.
Likewise, it should be noted that the early repayments for the payment of the mortgage loan (mortgage or monthly payment) are cumulative with the early repayments for other purposes, and, in this second case, limited to the aforementioned IAS.
In this way, and as the information from the AT indicates, “taxpayers may: amortize monthly amounts up to the IAS limit” and, at the same time, “request the partial or total return of the amounts invested for the ‘payment of installment loan contracts with mortgage guarantee on real estate intended for the participant’s own and permanent home, as well as installment loans for the construction or improvement of real estate for their own and permanent home, and deliveries to housing cooperatives in housing solutions own permanent home’”.
The Tax Benefits Statute grants an IRS benefit equivalent to 20% of the amounts invested in the PPR up to a limit of 400 euros per taxpayer (if the taxpayer is up to 35 years old), 350 euros (between 35 and 50 years). ) and 300 euros (over 50 years).
“Enjoyment of the benefit is without effect (…) and the amounts deducted, increased by 10%, for each year or fraction, elapsed from the year in which the right to deduction was exercised, are added to the IRS collection of the year of the verification of the facts, if any income is attributed to the participants or the reimbursement of the certificates is granted, except in the event of the death of the subscriber or when at least five years have elapsed since the respective delivery and any of the situations defined by law occur”, determines the EBF.
Source: Observadora
