# Accountants Urge Simplification of Tax Exemptions on Performance Bonuses Professional order requests removing salary increase requirements to unlock tax benefits for workers. - **Source:** [Observador](https://observador.pt) - **Published:** 2026-11-04 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/d9b63d09-b996-47e4-96c3-c1de5bc39bf2 ## Proposed Tax Reform The Order of Certified Accountants (OCC) is lobbying for changes to the 2027 State Budget proposal. They specifically target the removal of mandatory salary increase conditions currently required to access tax exemptions on performance bonuses. These bonuses, including profit-sharing, are currently exempt from social security and income tax up to six percent. ## Current Legal Constraints Existing regulations link these tax benefits to Article 19-B of the Tax Benefits Statute. Companies must prove an average annual base salary increase of at least 4.5 percent to qualify. Accountants argue that these rigid thresholds create significant operational hurdles, making it difficult for businesses to apply the intended tax relief effectively. ## Call for Decoupling Paula Franco, head of the OCC, testified before the Budget and Finance Committee regarding the 2027 State Budget. She advocated for decoupling the tax exemption from salary growth mandates. By removing this link, the measure would become more operational and accessible, fulfilling its original purpose of boosting worker compensation without complex administrative barriers. ## Withholding Tax Concerns Beyond salary requirements, the OCC suggests eliminating the mandatory withholding tax on these bonuses. Accountants argue that this requirement distorts the primary objective of the policy, which is to provide financial relief to employees. Simplifying this process is viewed as a crucial step toward reducing the overall tax burden on performance-based earnings. ## Broader Regulatory Requests The OCC presented eight distinct suggestions during the budget review process. These include aligning rental lease modalities with the Affordable Rental Simplified Regime and revising property tax laws to exclude protected corporate restructurings. These proposals aim to streamline various fiscal procedures that accountants currently find overly burdensome and difficult to implement daily. ## Bureaucracy vs. Policy While the government expresses a commitment to reducing bureaucracy, accountants report a different reality. Paula Franco highlighted that new regulations, such as those for the Affordable Rental Simplified Regime, force professionals to submit data to the IHRU that is already available to tax authorities, illustrating a disconnect between political discourse and practice. ## Operational Efficiency Focus Most of the suggestions provided by the OCC are technical and operational in nature rather than ideological. By focusing on legislative adjustments, the accountants seek to harmonize existing laws. This approach aims to minimize the administrative load on companies and professionals, ensuring that tax policies are practical and easy to execute. ## Impact on Policy Implementation The debate underscores the tension between using tax policy as a tool for social engineering and the need for administrative simplicity. If the government adopts these recommendations, it could significantly ease the compliance burden for thousands of firms. The outcome will determine whether fiscal incentives effectively reach workers or remain trapped in bureaucracy. ## Sources covering this story - https://observador.pt/2026/11/04/oe2027-contabilistas-pedem-que-isencao-de-premios-de-produtividade-nao-esteja-condicionada-a-aumentos-salariais/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._