Exemption from payment of IUC (Single Circulation Tax)?

Deepak Gupta July 16, 2022
Updated 2022/07/16 at 10:29 PM

The IUC (Imposto Único de Circulação) is an annual tax that is levied on the ownership of a motor vehicle (and not on the circulation), paid until the vehicle is scrapped, whose values ​​are updated every year in January.

The IUC is the tax that replaces the old “car stamp” and should not be confused with the ISV, which is a tax paid only when the vehicle is registered for the first time in Portugal. Who can apply for the IUC Payment Exemption?

The IUC is levied on practically all vehicles registered in Portugal, or that remain in the country for a period exceeding 183 days, in each calendar year. The exemption from paying the IUC is granted depending on the characteristics of the owner and the vehicle.

Who can request IUC Waiver?

The exemption from paying the IUC is granted depending on the characteristics of the owner and the vehicle.

people with disabilities

Persons suffering from a degree of disability greater than or equal to 60%.

However, this exemption from paying the IUC is limited to specific vehicles. Thus, it only applies to category B vehicles with low CO2 emissions (up to 180 g/km, by the NEDC test, or up to 205 g/km, by the WLTP test) and of categories A and E.

In addition, each owner can only benefit from this exemption in relation to one vehicle each year. And the amount of the tax cannot exceed the amount of 240 euros. If this limit is exceeded, the excess must be paid by the owner.

IPSS

All Private Social Solidarity Institutions (IPSS).

vehicles

Vehicles considered special are exempt from paying the IUC, namely:

  • Vehicles for central, regional, local administration and military and security forces;
  • Vehicles acquired by humanitarian associations of firefighters or municipal councils to fulfill the protection, rescue, assistance, support and firefighting missions assigned to their fire departments;
  • Cars and motorcycles from foreign States, diplomatic and consular missions, international organizations and specialized European agencies, as well as their respective officials, when their recognition is mandatory by virtue of an instrument of international law;
  • Vehicles of categories A, C, D and E with more than 30 years considered of historical interest by the competent authorities. The exemption from paying the IUC applies if they are used occasionally and the annual trips do not exceed 500 kilometers;
  • Cars and motorcycles over 30 years old that are public museum pieces. The exemption from paying the IUC applies if they are used occasionally and the annual trips do not exceed 500 kilometers;
  • Non-motorized vehicles, exclusively electric or powered by non-combustible renewable energies;
  • Special goods vehicles without transport capacity;
  • Ambulances and vehicles for transporting patients;
  • Funeral vehicles;
  • Agricultural tractors;
  • Category B cars with CO2 emission levels up to 180g/km (NEDC test) or up to 205g/km (WLTP test);
  • Category A cars intended for rental with a driver (letter T) or for transport by taxi;
  • Vehicles seized within the scope of criminal proceedings, while the seizure lasts;
  • Vehicles considered abandoned, from the moment they are acquired by occupation by the State or by local authorities;
  • Ships considered abandoned that are part of the State's patrimony;
  • Vehicles declared lost in favor of the State;
  • Vehicles used by teams of forest firefighters that are part of the Forest Defense System against Fire.

Depending on the category, there are some vehicles that only pay 50%:

  • D, when authorized or licensed to transport large objects;
  • C and D that carry out transport exclusively within the territorial area of ​​an autonomous region;
  • C with a gross weight of more than 3 500 kg. This is provided that the owners are primarily engaged in itinerant entertainment or performing arts and the vehicles are exclusively used for this activity.

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