OE2024: Hospitality wants support for housing and tax relief for overtime work

Proposed State Budget for 2024 should be delivered to the Assembly of the Republic on Tuesday

The Portuguese Hotel Association (AHP) proposes that the State Budget for 2024 include a relief in the tax burden for overtime work, an exemption from taxation on tips and an extraordinary incentive for housing.

“We considered that we should surgically direct the proposals to the needs we feel, not just as an inward-facing sector […], but some situations that affect all companies. We are heading in three directions: measures for employment, housing and fiscal impact”, revealed the executive president of AHP, Cristina Siza Vieira, in statements to Lusa.

In terms of employment, the association advocates that overtime work be partially relieved of the tax burden, particularly in terms of IRS (Personal Income Tax) and Social Security, up to a limit of 200 hours per year.

In addition, there is the exemption from autonomous taxation of bonuses received for providing work, when they are not attributed by the employer, that is, tips, a measure that had already been claimed by the hotel industry regarding the State Budget for 2023.

“We should have models that are more elastic and closer to what is practiced in countries competing with Portugal. [Tips] should be declared, but exempt from taxation up to a limit”, pointed out Cristina Siza Vieira.

On the other hand, the sector demands a reduction in taxes and TSU (Single Social Tax) for hiring young people up to 35 years of age.

The AHP also suggests the creation of extraordinary housing support for displaced workers, given the respective scarcity and also the need for mobility in the hotel industry, but also in sectors such as agriculture, education or health.

The amount of this monthly support, according to the association, should not be included in remuneration and should be exempt from all taxes and contributions, similar to what happens, for example, with food or transport allowances.

“It doesn’t [solve] everything, but it’s an increase that we think is justified and doesn’t increase indirect costs for workers. Alternatively, tax benefits for companies that create accommodation for workers. There are companies that can do it and others that cannot,” she added.

As for fiscal impact measures, the hotel industry proposes increasing deductions for the collection of IRC (Corporate Income Tax) in terms of reinvestment.

This includes the renovation and updating of hotel units, sustainable solutions, units outside the main tourist hubs, as well as the rehabilitation of buildings.

The State Budget proposal for 2024 should be delivered to the Assembly of the Republic on Tuesday.