Tax & Compliance
Portuguese personal income tax. Determines taxation of mileage reimbursement above the €0.40/km cap.
Portuguese IRS taxes personal income. For mileage: reimbursement up to €0.40/km is tax-free; the excess is treated as Category A (employment) or Category B (self-employment) income depending on the recipient's regime, subject to IRS and Social Security. Self-employed under the simplified regime cannot deduct mileage separately; under organised accounting they can deduct €0.40/km with an itinerary slip or actual vehicle costs prorated by business use.