On September 25 was published and entered into force the Law no. 28/19, introducing the following amendments to the Personal Income Tax Code (“PIT”):

• Holiday and Christmas allowances no longer benefit from an exclusion from taxation, which was previously applicable to the amounts paid up to 100% of the base salary – Article 2, paragraph m) repealed;
• Employment sourced income obtained by national citizens over the age of 60 no longer benefit from a tax exemption – Article 5, paragraph e) repealed;

Please note that the Christmas bonus to be paid in 2019 will already be subject to taxation this year.

For additional information regarding this subject, please refer to the document attached (in Portuguese) which contains the abovementioned Law.