Legal alert no. 40

The Law no. 106/2017, published in the Official Gazette of the Republic of Portugal on the 4th of September, ensures the right to joint declaration of dependents’ expenses and income on personal income tax (IRS) in situations in which parental responsibilities are exercised by more than one taxable person.

The Law no. 106/2017 enters into force with the State Budget Law subsequent to its publication (article 4 of this law).

The Law no. 106/2017 introduces some changes to the IRS Code so that the legal solutions are better aligned with the social reality in its diversity and complexity. Since 2015, couples who are divorced or legally separated of people and goods exercising parental responsibilities together may share in their IRS declarations the expenses with their dependent children. However, that possibility only became available for all the other cases of joint exercise of parental responsibilities (e.g.dissolution of the non-marital partnership, inexistence of any legal bond between the parents) with the publication of the Law no. 106/2017.

Nowadays, in situations of joint exercise of parental responsibilities it is common to determine the residence of minors in the homes of both their parents, hence Law no. 106/2017 has introduced the possibility for those minors to be included in both households for IRS purposes (article 13, no. 10 of the IRS Code with the wording given by this law). This law also allows parents who are separated to include in their IRS declarations deductions per dependent and deductible expenses related to their children, equally or in the proportion established in the agreement of regulation of the exercise of the parental responsibilities (articles 78, no. 10 and 78-A, no. 1, b) of the IRS Code with the wording given by this law).

To access the complete text of the Law no. 106/2017 please go to -

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