The Youth IRS regime was created to ease the tax burden on young professionals at the beginning of their careers. In 2025, new rules were introduced allowing beneficiaries to request that their employer apply the tax exemption rates directly to their monthly salary, making the benefit immediately visible in net income.
Who Can Benefit?
The regime is available to individuals up to the age of 35, regardless of their education level, who earn employment income (Category A) or self-employment income (Category B).
To qualify, beneficiaries must no longer be considered tax dependents and must have their tax status in order.
How to Request a Reduction in Withholding Tax
To benefit from this adjustment at source, the worker must:
- Submit a formal written request to their employer under Article 99-F of the Personal Income Tax Code (Código do IRS);
- Indicate the year in which they began earning income as a non-dependent;
- Provide supporting documentation that proves eligibility for the Young IRS scheme.
Once these steps are completed, the employer may adjust the withholding rate to reflect the applicable exemption for that year, allowing the tax benefit to be felt monthly.
Important Considerations
It’s essential that beneficiaries correctly declare the year they first started earning income, as the level of exemption varies depending on that date.
Additionally, it’s important to evaluate whether receiving the benefit in monthly pay is the most financially advantageous option, as it may result in a lower tax refund — or additional tax owed — when filing the annual tax return.
Reis & Pellicano provides legal insight to help individuals navigate evolving tax obligations with clarity and confidence.
