If you have hired a domestic employee, it is important to remember that there is a mandatory declaration that must be submitted to the Tax and Customs Authority by the end of February—the Model 10 declaration. This tax document serves to report to the Tax Authority the income paid and the withholding taxes applied in […]
If you have hired a domestic employee, it is important to remember that there is a mandatory declaration that must be submitted to the Tax and Customs Authority by the end of February—the Model 10 declaration. This tax document serves to report to the Tax Authority the income paid and the withholding taxes applied in the previous year.
What is the Model 10 Declaration?
The Model 10 declaration is a tax document aimed at informing the Tax Authority about the income paid to employees and other entities residing in Portugal, whether subject to tax or not, which were not declared throughout the previous year via the monthly remuneration declaration. This document must also report any withholding taxes applied.
Who is required to submit the Model 10 declaration?
The submission of the Model 10 declaration is mandatory for all entities making payments subject to withholding tax. These payments may result from dependent work (Category A), pensions, business income, capital income, rental income, and property income that are subject to withholding tax. Additionally, securities registrars, custodians, and debtors of income subject to corporate income tax (IRC) withholding, unless exempt, must also submit this declaration.
Does the submission of the Model 10 declaration apply to domestic employees?
Yes. Domestic employees fall within the scope of the Model 10 declaration, as their employers, even if private individuals, are responsible for reporting to the Tax Authority the income paid and, where applicable, any withholding taxes.
Deadline and Extension for Submitting the Model 10 Declaration
Traditionally, the Model 10 declaration had to be submitted by February 10 each year. However, pursuant to Order No. 14/2025-XXIV of January 31, the deadline for submitting this declaration has been extended to February 28, 2025, allowing employers more time to fulfill this tax obligation.
How to Submit the Model 10 Declaration?
The Model 10 declaration must be submitted via the Tax Authority’s online portal, using the employer’s login credentials. While it was previously possible to submit this declaration in person at the tax offices, since January 2022, electronic submission has become mandatory. It is recommended to verify all data in advance and submit the declaration on time to avoid penalties.
What if I don’t submit?
We emphasize that failure to meet the established deadline may result in fines and penalties, which may also accrue interest on the amounts that should have been reported. Furthermore, delays in submitting the Model 10 declaration may impact the issuance of debt-free certificates by the Tax Authority, which are often requested by banks or other services.
Lisbon, February 7, 2025
Zuzanna Maria Sadlowska – AAMTLEGAL
