Withholding tax form / Fiche de Retenue d'Impôt

If you work in Luxembourg and your employer or pension fund pays withholding tax on your behalf, you can apply for various deductions in your tax return. How to do this?

Fiche Retenue d'Impôt form

Income from wages and pensions is subject to income tax. The employer deducts this tax from the employee's monthly payroll. The amount of income tax is determined by the Fiche Retenue d'Impôt form.

Fiche Retenue d'Impôt form and tax return

When filing a tax return, it is crucial to determine how the employer paid tax for the employee and in what amount. The form also indicates the tax bracket to which the taxpayer belongs. This also affects the possibility of claiming tax benefits on the Luxembourg tax return.

Fiche Retenue d'Impôt form and tax allowances

The employee can use the form to apply the costs incurred in connection with work in Luxembourg. Tax deductions for Luxembourg residents and non-residents include, for example, expenses related to the performance of work.

How to get Fiche Retenue d'Impôt form?

The form is automatically sent to every employee at their address. The Luxembourg tax office - ACD (Administration des contributions directes), sends the forms at the beginning of the year until the end of February. If the taxpayer does not receive the deduction form by the given deadline, it is necessary to contact the relevant tax office with a request to issue the form. The tax office has 30 days to issue this form.

Updating data in the form

After receiving the form it is important, that the taxpayer checks its personal information. If there is any change that happens throughout the year (change of family status, personal information, change of address), it is necessary to inform the Luxembourg tax office.

The change of information, especially the change of family status has an impact on the change of the tax bracket. This change may result in a lower tax burden. In other words, changing your tax bracket can save you money. You have to report the change to the relevant tax office by the end of March.

Read also:

EU/EWR form for tax refunds from Germany, Austria, Belgium and Luxembourg

What is the EU/EWR form or the Foreign Income Tax Return Confirmation and what is it for?

Otherwise, if you would like to report a change of details and have not yet received the form in time, you might not be able to make the change. This could result in you being taxed in the original „less favorable” tax bracket.

The process of updating the data is different for resident and non-resident taxpayers.

• Resident - the tax office makes the change automatically without the taxpayer's request (based on the data from the online system)
• Non-resident - must request the tax office to update the data. The request can be submitted until the end of the March:
  • electronically - via the tax office's online system,
  • by post - via the 164 NR F form.

We are glad to help you with your Luxembourg tax return. If you are missing any of the documents you need to process your tax return or claim benefits, please contact us.