IRS Youth: You can now ask the employer to apply the withholding tax with the discount.
If you are covered by the Young IRS, know that, from now on, you can request at any time the application of the discount on withholding tax to the employer.
How to ask the employer to already apply the Young IRS regime to my salary?
Young workers up to 35 years old who meet all the requirements to access the Young IRS can now request the employer to withhold tax at source with the discount applied.
Therefore, the monthly salary is already issued with the exemption to which you are entitled according to the Young IRS, and you can request it from the company at any time.
So, the young worker must inform the employer that he is eligible for the Young IRS regime and wishes for it to be considered for withholding tax calculation, as well as the year of work he is in (if he has been working for 5 years, for example, he is in the 5th year).
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What changes in retention:
- With the Young IRS, a portion of the worker's income is exempt from taxation (100% in the 1st year of income, 75% from the 2nd to the 4th year, 50% from the 5th to the 7th year, or 25% from the 8th to the 10th year).
- This exemption reduces the taxable base used to calculate withholding tax, decreasing the monthly amount deducted from the salary.
These are the practical consequences:
- Before the company receives the order, the retention calculations follow the normal IRS tables, without considering the Young IRS exemption.
- After the request, the company adjusts the withholding tax to reflect the applicable exemption.
For example, a young person started working in January 2025 and only informed the company about joining the Young IRS in March 2025. In January and February, the withholding tax was calculated normally, without exemption.
Starting in March, with the formalized request, the retention will be adjusted and the young person will benefit from the monthly reduction provided for by the Young IRS.
If you do not request the discount on withholding tax before, at the time of submitting the annual tax return (between April and June of the following year) you must opt for the Young IRS regime and the tax adjustment will be refunded at that time.
In case of doubts, contact the Human Resources or Accounting department of the employer.
Read more about young IRS: How does the new young IRS regime work?
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