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Entrepreneurs want the IRS to increase family income

Entrepreneurs want the IRS to increase family income

The vast majority of entrepreneurs would like to see fiscal measures included in the state budget (OE) for 2023 respond to inflation (94%) and the energy crisis (84%), according to an EY study published Tuesday.

“I conclude that 94% of respondents demand changes to the IRS that mitigate the effects of inflation and allow wage increases to be translated into Real increase in net household income‘, in a statement, EY.

in return, 87% of companies defend the adoption of procedures in the IRS (Individual Income Tax) which in the short run increases the net income of families, warning that if this does not happen, there may be a setback in private consumption.

Among the measures presented is Rework steps, reduce price escalation, expand deductions.

previously 70% of businesses want changes to VATemphasizing the application of a reduced or average rate to the consumption of natural gas and electricity, a change required by 84% of companies.

still calculated 65% of companies complain about their IRC transfer (corporate income tax), focusing on measures such as flexible use periods for tax losses and credits, reduced independent tax rates and state surcharges.

With regard to financial competitiveness, 69% of entrepreneurs say it is important to eliminate stamp duty In the purchase of real estate intended for the rental market.

“With inflation driving up interest rates, 58% of businesses advocate extending stamp duty waivers on supplies, making it less expensive to use financing by partners or shareholders,” the statement read.

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In terms of the stability of the tax system, 86% of businesses want to reduce the legal time to 90 days to respond to non-urgent, binding information requestsWhile 50% demand measures that provide minimum periods of financial stability for some rules of structuring the tax system.

approx 70% of entrepreneurs also mentioned the need to introduce tax benefits associated with creating job opportunities for young people and create tax credits.

In the fifth edition of this survey, a Entrepreneurs, once again, gave a “negative note” to the Portuguese tax systemwith evaluation 2.02 points on a scale from one to five.

EY stated that all of the areas analyzed were negatively evaluated by entrepreneurs, and that The worst-rated areas were the access to and speed of the tax justice system and the high weight of the overall tax burdenwhich received an average score of 1.59.

“Given the long-term target of 2% inflation, companies would like an abnormal increase in tax revenue generated by the current framework to translate it, already in the 2023 state budget, into a reduction in the tax burden,” he said. Luis Marquez “State Tax Officer” at EY.

In order to conduct this study, a sample of 105 companies operating in Portugal, mainly in the financial services sectors (25) and the manufacturing sector (12), were considered.

Of the total number of companies considered, most have a turnover of 25 million euros (61%) and more than 250 workers (56%).

Participants are primarily responsible for the tax district, chief executives (CEOs), “Chief Financial Officers” (CFOs), and managing or financial directors (58%).

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