Law no. 28/20, of 22 July was published in the National Gazette, introducing relevant amendments to the Personal Income Tax Code.

In this regard, we highlight the following amendments:

• Enlargement of the tax base, including the elimination of non-subject and tax-exempt income (generic and specific exemptions)
• Redefinition of income taxed by the tax groups A and B
• Alteration of the tax computation rules applicable to tax groups B and C
• Changes to the tax settlement rules, namely in self-billing situations
• Change in the withholding tax rate to 6.5% in relation to income taxed under tax group B
• Change of the tax rate to 25% in the case of income taxed under the tax groups B and C
• Redefinition of the tax brackets and update of the applicable withholding tax rates applicable to income taxed under tax group A, with a maximum rate of 25%
• Taxation of income paid for services provided by non-resident individuals through the withholding tax mechanism at the rate of 15% (by application of the 'Special Taxation System for Accidental Services', as per article 71 and following of the Industrial Tax Code).

The amendments to the Personal Income Tax Code will enter into force 30 days after the date of their publication in the National Gazette.