You can find the income tax rates for 2014 here, in relation to Luxembourg. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double-taxation treaties.
Income Tax Base For Residents and Non-Residents of Luxembourg
- Residents of Luxembourg are subject to personal income tax on their total income, from all sources worldwide.
- Non-residents of Luxembourg are subject to personal income tax on sourced income from Luxembourg only.
- Their customary abode is in Luxembourg
- Their center of economical interests is in Luxembourg
Income Tax Rates for 2014
|Income tax is withheld at source:||40%|
|From EUR 0 to 11,265||0%|
|From EUR 11,265 to 13,173||8%|
|From EUR 13,173 to 15,081||10%|
|From EUR 15,081 to 16,989||12%|
|From EUR 16,989 to 18,897||
|From EUR 18,897 to 20,805||16%|
|From EUR 20,805 to 22,713||18%|
|From EUR 22,713 to 24,621||20%|
|From EUR 24,621 to 26,529||22%|
|From EUR 26,529 to 28,437||24%|
|From EUR 28,437 to 30,385||26%|
|From EUR 30,385 to 32,253||28%|
|From EUR 32,253 to 34,161||30%|
|From EUR 34,161 to 36,069||32%|
|From EUR 36, 069 to 37,977||34%|
From EUR 37,977 to 39,885
|From EUR 39,885 to 41,793||38%|
|From EUR 41,793 to 100,000||39%|
|For EUR 100,000 and above||40%|
Solidarity Surtax of 7% of taxes, or 9% for taxpayers earning more than EUR 150,000.
Allowable Deductions and Tax Credits
Subject to limitations, deductions are permitted for insurance premiums for life, accident, sickness; individual pension schemes; alimonies and annuities; childcare and housekeeping cost; charitable contributions; interest on personal and mortgage loans.
Special Expatriate Tax Regime
Luxembourg does not have a special expatriate tax regime for foreigners.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed List of countries having a tax agreement with Luxembourg.
- Withholding Taxes Dividends: Dividends: 0/15%, Interest and Royalties: 0%
- Bilateral Agreement The United Kingdom and Belgium are bound by a double taxation treaty.
Tax returns are due by 31st of March of the following year..
Figures Based on Sources
- Customs and Excise Tax Administration
- Finance Ministry
Other Domestic Resources
- Administration of Direct Taxes
- Administration de l'enregistrement et des domaines (indirect taxes)
- Consult Taxation trends in the European Union.