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Childcare vouchers VS Education vouchers

Chronicle written by Manuel Gomes ([email protected]t)

“Decree-Law no. 26/99 of 28 January established the creation of the so-called social vouchers, and from 1 January 2015 there were two categories: childcare vouchers and education vouchers.”

The vouchers came about as a measure by the Portuguese state to encourage the development and education of children, and the existence of these vouchers creates the possibility of tax benefits including increases for companies, Art. 43 CIRC.

Childhood vouchers

Os Vales Infância surgiram para incentivar o desenvolvimento e a educação das crianças até aos sete anos de idade, com despesas relacionadas com creches, estabelecimentos pré-escolares, ATLs e outros serviços de apoio à infância.

  • Employees receive the vouchers free of IRS and Social Security;
  • For companies, in addition to the cost being fully accepted, there is a 40 per cent surcharge on corporation tax and exemption from the TSU;
  • There is no value limit on the part of the company;

The value of the childcare voucher must be the same for all employees with children. If these conditions are not met, the payment will be taxed.

Education vouchers

The Education Vouchers aim to support families with school-age children aged seven or over. These vouchers can be used to pay public school fees, contribute to extracurricular activities or buy educational materials and much more.

  • Employees receive the vouchers free of social security;
  • For companies, not only is the cost fully accepted, but there is also a TSU exemption;
  • There is no value limit on the part of the company;

To summarise, education vouchers and childcare vouchers not only bring direct benefits to employees, but also offer opportunities for tax benefits for companies, through the deduction of expenses and top-ups, companies can reduce their taxable profit and reduce the taxes they have to pay.