Taxes in Europe Database v2
Law of 4 December 1967 on income tax, Title I, Articles 1-157 (Mémorial A, 1967, pp. 1228-1275), as amended by successive laws and implementing regulations, most recent of which are:
Law of 21 December 2001 (Mémorial A, 2001, p. 3320);
Law of 21 December 2007 (Mémorial A, 2007, p. 3320);
Law of 19 December 2008 (Mémorial A, 2008, p. 2624);
Law of 21 December 2012 (Mémorial A, 2012, p. 3830)
Municipalities get a given percentage of the collected tax.
Grand Duchy of Luxembourg.
All individuals whose domicile for tax purposes or usual place of residence is Luxembourg or who receive taxable income there.
Income. The tax is assessed on the net income computed as the difference between receipts and related expenses.
The tax is assessed on the net income computed as the difference between receipts and related expenses.
See “personal income tax”.
The tax is withheld by the employer or the pension fund for the account of the worker or the pensioner in accordance with tables of monthly or daily amounts which are drawn up on the basis of the general scale for personal income tax and allow for the standard deductions for special expenses (€ 480 per year), and the extra income tax charge for the re-employment fund (7 %) and other costs of acquisition (€ 540 per year for workers in paid employment and € 300 per year for persons in receipt of pensions).
In 2007 the tax allowance for children was substituted by a tax credit. In 2008 allowances for the employed, pensioners and monoparental families were substituted by tax credits (see template on personal income tax). Furthermore, a tax credit for independent persons (“credit d'impôt pour indépendants”) deriving income from trade or business, income from agriculture and forestry or income from self-employment has been introduced which amounts to 300 euros per year.
Tax withheld can be adjusted at the end of the tax year in accordance with Article 145 of the Law on income tax. When tax is calculated by assessment, withheld tax on wages, salaries and pensions is deductible from tax liability.
Tax is payable upon assessment (tax returns need to be filed before 31 March) and depending on the income level and associated tax due at the moment of the assessment, quarterly advance payments are fixed which are due in March, June, September and December.
Administration of direct taxes (Administration des contributions directes).