Thousands of taxpayers may have overpaid tax in recent years without even knowing. A new ruling from the Portuguese Tax Authority (AT) corrects an interpretation that stripped tax benefits from those whose disability degree was reduced, now opening the possibility to recover that money up to 2024. The catch is that none of this happens automatically, and there are deadlines.
What changed
The Tax Authority now recognises that cancer patients reassessed with a lower disability degree (for example, from 60% down to 40% or 30%) should not lose the tax benefits they were entitled to. The new interpretation comes via a recent circular and follows the Supreme Administrative Court ruling.
Who can benefit
If at any point you had a Multi-purpose Medical Disability Certificate of 60% or more and were later reassessed down, this directly affects you. Legal interpretations also suggest this applies to all taxpayers with reduced disability assessments, not only oncological patients.
Important: it is not automatic
The reinstatement of values does not happen automatically. You must review your IRS returns, confirm whether benefits were lost, and file replacement returns. If nothing is done, nothing is refunded.
What you should do now
Check your IRS returns since 2019 on the Tax Portal, run the simulator with and without the correction, and file replacement returns if it pays off. Don't delay — there is a four-year limit to correct old IRS returns.
