Tax declaration in Luxembourg: is it obligatory?
Whether you are resident or not, are you required to prepare a tax return in Luxembourg? Editus tells you more!
Is everyone required to complete a tax return?
A person who receives income in the Grand Duchy, whether resident or not, must establish one in the country.
Nevertheless, in some cases you are not required to file a tax return . So, you can do without it if:
- In your household, Luxembourg taxable income is less than 100,000 euros.
- In your resident household, your spouse does not receive any income in Luxembourg (salary, pension, Adem benefits).
- Your spouse, non-resident and non-married, did not choose the group taxation system.
- Annually, you do not receive any income above 600 euros, which is not deducted at source by taxes.
However, even if you can do without a declaration in Luxembourg, it may be interesting for you to do so because many products are tax deductible (loan interest, insurance, savings plans underwritten in Luxembourg, fees nursery and daycare, ...).
I have until when to fill my statement?
The deadline is March 31 to complete it on paper (Form 100) or online . Nevertheless, this date is not obligatory but recommended.
If you did not submit your return on time? If you file your return after March 31st, processing times will be longer, and you will be contacted by the Direct Tax Administration (CDA) in September, who will send you a reminder.
If you are required to file a tax returnand you do not respond to the September recall , you may have to pay a tax supplement. This can be very expensive since this "fine" can amount to up to 10% of the amount of tax due. Nevertheless, if a valid reason prevents you from submitting your returns on time, you can send the relevant tax office a written and justified request to see this extended period until June 30th.
In the event that you fail to provide a return even after a reminder, you may be required to pay a penalty amount, the amount of which is also set by the tax office.
If you are not required to complete a tax return in Luxembourg, you have until December 31 to file a tax return . If you do not meet this deadline, you will no longer be able to benefit from tax deductions.