It was published on the 10th of May, 2016 the new withholding tax tables to apply from May 2016 to employment income (category A) and pensions (category H), in Portugal. Regarding Azores and Madeira, the IRS withholding tables are different from the referred in this order.
The tables indicate the withholding rate according to the familiar situation. For example married and single people without dependents will, on some levels, have the same withholding tax they had in 2015. Additionally to this withholding tax, the employer shall withhold an additional rate named “Extra tax”, according to the tables, published on 11th of January 2016 by Circular 1/2016. With the Law 159-D/2015 of December, 30th the general rate of 3.5% was extinguished and the rate to apply is determined by the income scale.