Modelo 10 Declaration: Deadline Approaching for Companies to Report Employee Income

What is Modelo 10?

Modelo 10 is a mandatory tax declaration used to report to the Portuguese Tax Authority (AT) all income paid or made available to individual residents in Portugal, including income that is exempt or not subject to tax. It covers not only IRS-liable income not reported through the monthly payroll declaration (DMR), but also income subject to IRC withholding - except those exempt under articles 94 and 97 of the IRC Code.

Who Must Submit?

The obligation falls on persons or entities that have paid income to individuals in the following IRS categories: employment income (Category A), pensions (Category H), business and professional income (Category B), capital income (Category E), property income (Category F) and capital gains (Category G) - provided they are subject to withholding tax, even if exempt from it.

Also covered are entities that are registrars or depositaries of securities (Category E) and entities owing income subject to IRC withholding.

How and Where to Submit?

Since January 2022, under Portaria 278/2021, Modelo 10 must be submitted exclusively online through the Finance Portal at www.portaldasfinancas.gov.pt. Paper or in-person submission is no longer accepted for IRC taxpayers (even if exempt), IRS taxpayers with Category B income, and individuals who have paid employment income without carrying on a business or professional activity and without submitting the DMR.

Exception: Municipalities Affected by Storm Kristin

For taxpayers, companies and certified accountants residing in municipalities where a state of calamity was declared following Storm Kristin, the deadline for submitting Modelo 10 - and other declaratory obligations - has been extended to April 30, 2026. This extension also applies to tax payments, relieving pressure on those directly affected by the storms.

What Happens If You Don't Submit?

Failure to meet the Modelo 10 deadline may result in fines and compensatory interest, so it is advisable not to leave it to the last minute. For those with questions about how to fill it out or whether they are required to submit, the Finance Portal provides detailed instructions, and your certified accountant can provide the necessary support.

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