Taxes in Europe Database v2
Law of 23 December 2005 on
1.the Introduction of an automatic Withholding Tax on certain interest payments generated by savings in transferable assets;
2.the abolishment of wealth tax for individuals;
3.the change of certain provisions of the modified Law of 4 December 1967 concerning Personal Income Tax. (Mémorial A, N°215, p. 3265 of 28 December 2005).
Law of 17 July 2008 modifying the Law of 23 December 2005 (see above), (Mémorial A N° 107, p. 1510 of 25 July 2008).
Luxembourg residents - persons claiming not to be Luxembourg taxpayers have to produce a certificate by a foreign tax authority.
Interest payments of different types:
Interest payments generated on bank accounts where the applicable tax rate is more than 0.75%.
Annual interest payments of less than 250 euros.
Super reduced rate
Monthly (at latest by the 10h day of the following month)
Administration of Direct Taxes (Administration des Contributions Directes).
Tax on interest payments is directly withheld by the financial institutions. It is not part of Personal Income Tax.