How does the counting of years work for young IRS?
Better understand how the new youth IRS regime works and how years of work are counted to benefit from it.
How does the new young IRS regime work?
According to the Tax Portal, the new Youth IRS regime applies to income obtained from the year 2025 onwards, corresponding to a partial exemption from taxation, with limits according to the year of work.
The benefit is applied up to the age of 35, during the first 10 years of income, as long as the young person still meets the age criteria.
The exemption applies as follows:
100% of income in the 1st year of income generation;
75% of income in the 2nd, 3rd, and 4th year of income generation.
• 50% of income in the 5th, 6th, and 7th year of income generation;
25% of the income in the 8th, 9th, and 10th years of income.
And how is the counting of years of income obtained carried out?
According to a publication by the Government on the social network Instagram, the counting of years of income starts in the first year when the young individual obtains income from category A and/or B, without being considered dependent.
Only the years in which income is declared as a non-dependent in the family tax return count towards accessing the benefit.
In other words, even if you have earned income as a non-dependent, and then have done, for example, an alternating year in which you earned income as a dependent, the previous time in which you filed the IRS as a non-dependent is not considered.
Time starts counting from the year it became independent and maintained the same quality until now.
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