According to a report by Público, based on data requested from the Tax and Customs Authority (AT), in 2023, the income obtained by workers through tips was €121.6 million, a value much higher than that seen, for example, in 2015 (€59.6 million). The numbers also show that in one year, from 2022 to 2023, tips increased by 16%, from €105 million to the €121.6 million mentioned.

As the publication reminds us, tips are classified under tax legislation as “gratifications” and are considered income from salaried work (like a salary), and must be declared to the State by workers when submitting their annual Income Tax declaration. However, unlike salaries, to which the progressive rates of income brackets are applied, they are taxed at an autonomous rate of 10%, writes Público.

The reality is, however, different, as explained by lawyers Joana Lobato Heitor and Bárbara Miragaia, from the tax department of MFA Legal: “Despite the declaratory obligation that arises from the letter of the law for this type of worker, there is a widespread awareness that, in most situations, these values ​​are not declared to the Tax Authorities”.