Flash News NA 2025/09/04
Portugal - Adjustments to the Monthly Remuneration Declaration instructions take effect in September 2025
Ordinance No. 289/2025/1, dated 1 September, updates the instructions for the Monthly Remuneration Declaration (DMR), effective from 1 January 2025. These revisions reflect changes to the Young IRS regime and the taxation of bonuses, profit-sharing, and balance gratifications.
Ordinance No. 289/2025/1, published on 1 September 2025, introduces updates to the model and instructions for the Monthly Remuneration Declaration – AT (DMR), which had initially been approved under Ordinance No. 33/2024, of 31 January. The updated version takes effect on 2 September 2025, with retroactive application from 1 January 2025.
These updates are prompted by changes included in the State Budget 2025, which amended access conditions to the Young IRS regime and defined the taxation rules for productivity bonuses, performance awards, profit-sharing, and balance gratifications paid during 2025.
Key changes include:
1. Box 4: Introduction of code A41, used to report voluntary, non-regular payments made to employees or statutory bodies—for example, bonuses, profit-sharing, or balance gratifications—up to 6 % of the employee’s annual base salary, as per article 115.º of Law No. 45-A/2024.
2. Updated instructions for code A68, referring to dependent work income, including holiday and Christmas allowances, with the portion exempt under the Young IRS regime, adapted to the 2025 budget rules.
Conclusion
The amendments introduced by Ordinance No. 289/2025/1 make it essential for employers to adapt their processes correctly to the 2025 DMR requirements. Introducing code A41 and the revision of A68 require internal updates to payroll data capture and declaration procedures. Incorrect usage of these codes may result in invalid submissions and potential penalties.
How Nominaurea can help
Nominaurea offers specialised payroll and tax-compliance solutions tailored to these legislative changes. The platform can automatically identify amounts eligible for code A41 and ensure proper application of the Young IRS regime via code A68. It also provides data validation before submission, personalised alerts, and ensures full legal compliance—mitigating the risk of errors and penalties.
