On 30 October 2026, the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) published Circular No. 6/2026, establishing the withholding tax tables applicable to dependent work income and pensions for the Autonomous Region of the Azores for November 2026. This circular implements the regional legislative adjustments to the Personal Income Tax (IRS) withholding rates, reflecting the specific tax autonomy granted to the Azores under the Portuguese Constitution and the Regional Finance Law. The tables are effective for income paid or made available during November 2026 and replace the previous tables issued for October 2026. Employers and pension entities operating in the Azores must update their payroll systems immediately to ensure compliance with the new rates, which feature progressive brackets adjusted for regional inflation and solidarity surcharges.
Key Takeaways
- Region-Specific Rates: The Azores tables differ from mainland Portugal and Madeira, incorporating regional deductions and tax credits for residents, requiring separate payroll configurations for employees tax-resident in the archipelago.
- Immediate Application: The tables apply to November 2026 payroll processing, with no transitional period; late adoption may trigger penalties under the General Tax Law (LGT) for incorrect withholding.
- Coordination with Social Security: The circular reminds withholding agents to align the new IRS rates with unchanged Social Security contribution ceilings, ensuring net pay calculations remain accurate.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement