In a press conference following the Council of Ministers meeting, the Minister of the Presidency, António Leitão Amaro, explained that what is at stake is a doubling of the IRS allocation from 0.5 to 1% for public benefit institutions.

Leitão Amaro highlighted that the measure applies to income earned by taxpayers this year, thus having effects on the IRS settlement campaign that takes place next year.

The government official argued that the measure, on the one hand, reinforces “taxpayers’ freedom of choice”, of “being able to allocate the product” of taxes and, on the other hand, it reinforces in a “very significant” way the support for associations “of recognised public utility”.

The number of entities to which taxpayers can allocate 0.5% of their IRS or donate the VAT tax benefit increased again this year, exceeding 5,000, according to the list available on the Finance Portal.

The choice of entities applying for this IRS assignment can be made until the end of March or during the annual tax declaration submission process, which began on April 1st and ends on June 30th.

These entities include hundreds of associations and academies dedicated to various purposes, recreational bands, people's houses, various social, day, parish, children's or community centers, foundations, cooperatives, choirs, charities, or philharmonic and musical societies.

This allocation does not cost the taxpayer anything nor does it mean a reduction in the refund, since the amount is taken from the tax that is handed over to the State.