Category A Theory

Question 1

What is aggregated in Category A?

Answer 1

Every source of income that is considered remuneration

Subject to general tax rates set out in Articles 68 and 68A.

Question 2

How is the market value of personal use of a vehicle calculated?

Answer 2

Market Value = Price of Acquisition - (Price of acquisition x Depreciation)

This formula is used to determine the income related to personal vehicle use.

Question 3

What is the formula for calculating annual income related to vehicle use?

Answer 3

Annual Income = 75% x Car Market Value x Months of use in a year

This calculates the income based on the vehicle’s market value and usage.

Question 4

What is the taxable income from the acquisition of a vehicle?

Answer 4

Taxable Income = Market Value - (amount taxed with its use + Acquisition Price)

This reflects the positive difference between market value and taxed amounts.

Question 5

How is total income calculated?

Answer 5

Total Income = Gross Salary + Taxable Income

Represents the overall earnings of an individual.

Question 6

What part of the meal allowance is considered taxable?

Answer 6

Only the part that exceeds the legal limit

In cash 6 euros per workday; in meal vouchers up to 10.20 euros per workday.

Question 7

What is the mileage allowance rate per kilometer?

Answer 7

Mileage Allowance up to 0.4 euros per km

This is the compensation rate for travel by vehicle.

Question 8

What is the daily allowance for Board Members in Portugal?

Answer 8

69.19 euros per day

167.07 euros per day when travelling abroad.

Question 9

What is the daily allowance for other employees in Portugal?

Answer 9

62.75 euros per day

148.91 euros per day when travelling abroad.

Question 10

What is the specific deduction amount for Category A Employment Income?

Answer 10

4,462.15

If social security exceeds this value, it shall be the total amount.

Question 11

Who is subject to withholding tax?

Answer 11

Residents

Includes various types of remuneration.

Question 12

What types of remuneration are subject to separate withholding?

Answer 12

• Vacation bonuses
• Christmas bonuses/allowances
• Compensation for overtime work
• Remuneration from previous years

These cannot be added for tax calculation in the months they are paid.

Question 13

What is the rate for supplementary work (overtime pay)?

Answer 13

50% of the rate applicable to the monthly remuneration

This applies for the month in which it is paid or made available.

Question 14

How is the withholding tax amount rounded?

Answer 14

Rounded down to the nearest euro unit

This applies to the result due to the application of withholding rates.