Changes to IRS Jovem

In 2025, the IRS Jovem underwent changes and can now cover a larger universe of young people in the early years of their contributory careers.

 

The IRS Jovem is a distinct tax regime that partially or totally exempts the payment of Personal Income Tax (IRS).

 

Young people up to 35 years old (as of December 31 of the tax year in question) who earn income from dependent work for others – category A, and/or business and professional income on their own account – category B, can benefit from this exemption.

 

The level of education is no longer relevant for verifying this exemption.

 

The benefit can be applied for a maximum of 10 years, consecutive or not, while not reaching the age of 35, and up to the limit of 55 times the value of the IAS (Social Support Index), which in 2025 corresponds to €28,737.50.

 

In the first year of earning income, the exemption is 100%. Gradually, the exemption decreases by 25% every 3 years: from the 2nd to the 4th year the exemption is 75%, from the 5th to the 7th year the exemption is 50%, and from the 8th to the 10th year the exemption is 25%.

 

This reduction can be directly applied to the withholding tax on the young taxpayer's salary. To do this, they must inform the employer of their intention to benefit from article 12-B of the IRS Code.

 

Alternatively, they can benefit from the exemption when submitting the annual IRS declaration, selecting the Young IRS option in tables 4A and 4F, in the case of dependent work (category A). For self-employed income (category B), they must fill in table 3E.