By law, a change in the degree of disability does not mean a loss of rights. The Tax Authority disagrees.

There are now three rulings from the Supreme Administrative Court that convey the same directive: a taxpayer who benefits from rights and advantages based on a disability degree equal to or greater than 60%, certified by a multipurpose medical certificate, shall retain those rights even if, after reassessment, they are attributed a lower degree of disability for the same clinical condition.

Aware of the difficulties faced by citizens with disabilities, the legislator has established various rights and tax benefits under IRS (Personal Income Tax), VAT, IUC (Vehicle Tax), and ISV (Vehicle Tax on First Registration), safeguarding and prioritising their protection over the financial interests of the State.

However, in recent years, due to changes in the law, the Tax Authority has been advocating the position that if, upon reassessment of the condition, the taxpayer is attributed a lower degree of disability, they lose the rights and benefits previously granted to them. This has forced many taxpayers to resort to the courts to assert their rights.

While it is true that from the reading of the legal provisions contained in Article 4-A, added to Decree-Law No. 202/96 of October 23, which interpreted paragraphs 7 and 8 of Article 4 of the same decree in the version given by Decree-Law No. 291/2009 of October 12, the conclusion now established by case law clearly emerges, it is equally true that the Tax Authority has acted in a manifestly opposite direction, with numerous legal cases pending on this matter.

Through the rulings now published, the understanding is reinforced that, in the case of disabling conditions, the most favourable evaluation for the taxpayer should always prevail. Even though they may benefit from a positive evolution of their illness, it is not yet overcome, and they still face increased healthcare expenses and, in many cases, difficulties reintegrating into the job market.

This situation becomes particularly pressing, especially when considering the high number of people with disabilities, cancer patients, and other severe conditions who, since the initial evaluation, have benefited from these fiscal rights and advantages.

Thus, following the jurisprudential guidance of the higher courts and the criticism directed at the conduct of the Tax Authority, a path begins to emerge toward revising its general guidelines in this domain, thereby unquestionably strengthening the rights of those who, due to their health condition, require greater protection.