If your business employs staff, you are required to comply with several ongoing reporting obligations. One of the most important is the Monthly Declaration of Remuneration (Declaração Mensal de Remunerações – DMR).

This declaration must be submitted every month by employers and certain entities that pay employment income, allowing the Portuguese Tax Authority and Social Security to calculate the taxes and social security contributions due.

In this guide, we explain what the DMR is, who must submit it, what information it includes, and the applicable deadlines.

Monthly Declaration of Remuneration: What is it and who must submit it?

The Monthly Declaration of Remuneration (DMR) is a mandatory monthly filing that must be submitted by employers to both:

• the Portuguese Tax Authority (Autoridade Tributária e Aduaneira – AT); and 
• the Portuguese Social Security (Segurança Social). 

The declaration must also be submitted by any entity that pays employment income (Category A income) subject to Portuguese IRS (Personal Income Tax).

Its primary purpose is to report employee remuneration so that the relevant tax withholdings and Social Security contributions can be correctly assessed.

What information must be included?

When submitting the DMR, employers must report information relating to each employee, including:

• the amount of remuneration subject to Social Security contributions; 
• the employee’s working time; 
• the Social Security contribution rate applicable to each employee. 

The declaration also includes information on employment income and the corresponding tax treatment.

Among the income that must be reported are:

• • income subject to withholding tax, even where the applicable withholding rate is 0%, under Articles number 99 and 100 of the Portuguese IRS Code;

• income not subject to withholding tax under Article number 99, nº 1 of the IRS Code, including certain gratuities not paid directly by the employer, as provided for in Article number 2, nº 3, item g; 

• exempt income that must nevertheless be aggregated for tax purposes under Articles  number 18, 33, 37, 38 and 39 of the Tax Benefits Statute (Estatuto dos Benefícios Fiscais – EBF); 

• income not subject to IRS under Articles number 2 and 12 of the Portuguese IRS Code.

Who is exempt from submitting the DMR?

Not every entity is required to submit a Monthly Declaration of Remuneration.

Generally, the obligation does not apply to:

• entities with no employees; 
• entities whose workers contribute to another statutory social protection scheme, as may occur with certain corporate officers or statutory bodies. 

Each employer should confirm whether any exemptions apply to its particular circumstances.

Submission deadline

The Monthly Declaration of Remuneration must be submitted by the 10th day of the month following the month to which the remuneration relates.

If the deadline falls on a weekend or public holiday, it is automatically extended to the next working day.

If any errors are identified after submission, they can generally be corrected through the declaration submitted for the following month, subject to the applicable legal procedures.

Is the DMR still mandatory?

Yes.

Since 2013, remuneration reporting has been consolidated into this single monthly declaration.

Although there have been proposals in recent years to simplify employers’ reporting obligations, the Monthly Declaration of Remuneration (DMR) remains mandatory.

Employers must therefore continue to submit the declaration each month within the statutory deadline established by the Portuguese Tax Authority and Social Security.

Conclusions

Submitting the Monthly Declaration of Remuneration accurately and on time is one of the key obligations of every employer in Portugal.

Failure to comply may result in penalties, interest charges, or administrative issues affecting both the employer and employees.

To ensure full compliance, businesses should maintain accurate payroll records and review all remuneration data before submission. If you are unsure about any aspect of the DMR or your payroll obligations, consulting a Certified Accountant can help ensure that your reporting is accurate and compliant with Portuguese legislation.