Tax return /form 100/ in Luxembourg

14th Apr 2020

Do I have to file a tax return if I worked in Luxembourg?

As an employee you must file a tax return if:

  • I worked in Luxembourg at least 9 months in a tax year and
    • my yearly income did not exceed 100 000 EUR
    • in case multiple sources of income or pensions taxable in Luxembourg exceed 36 000 EUR for the tax class 1 or exceeds 30 000 EUR for tax class 1A - for example if a taxpayer is being compensated for multiple activities by several employers simultaneously
  • you’re married and one of you is a resident and the other one a non-resident and you decided to file a joint tax return which temporarily puts you into the tax class 3
  • you receive a notice from the tax office telling you to file one, even if you are a non-resident
  • you are a taxpayer whose income income is not covered by withholding tax

Taxable income not covered by withholding tax is:

  • income from self-employment
  • income from renting property in Luxembourg
  • income received from a foreign employer
  • income from foreign pension funds

You can file a tax return if:

  • you decide to be taxed as a resident in order to gain the same deductibles and tax benefits as actual residents
  • you file a tax return with your spouse or partner in order to be classified as tax class 2
  • if you received royalties lower than 100 000 EUR
  • you decide to be taxed with your spouse and one of you is a resident and has a tax liability (also this resident must have 90 % of the household’s income in the given tax year) and the other one is a non-resident

If you have income from dividends pensions or executive bonuses you can find more information about tax liabilities here:

Annual tax settlement

A taxpayer that does not fulfil the requirements for filing a tax return can file an application for tax settlement /form 163/. This annual tax settlement is convenient if:

  • you end education and starts working in Luxembourg during the tax year
  • you are an employee or senior citizen who had a variable or no monthly income during the year
  • you are gainfully employed in Luxembourg only for a portion of the year /with the exception of ending a professional relationship during the year/
  • you want to apply for certain tax benefits such as extraordinary expenses for children

Benefits for extraordinary expenses for children can be received the following way:

  • the taxpayer does not live with the child in one household but does pay for utilities, education and the child’s development (the child has to be a full-time student with an education plan that lasts longer than 1 year if the he/she is older than 21 years) - the paid amount should represent the majority of the taxpayer’s expenses
  • the taxpayer is obliged to enclose any supporting documents about expenditures he paid for, the tax office can request additional documents as well
  • the above mentioned deductible amounts cannot exceed actual expenses and 4020 EUR/year per child

Note: This benefit cannot be claimed if the child has income above 60 % of the living minimum.

Applying for these benefits may not lead to a tax refund. An application for an annual tax settlement is beneficial to the taxpayer only if he/she is realistically expecting a refund for the withholding tax paid by the employer or pension fund.

For more information about the possibility of a tax refund from Luxembourg please visit our site about taxes in Luxembourg.

I want to file a tax return