The annual income certificates for the 2025 financial year are now available. They include all remuneration paid as well as deductions made during the past year. These documents are essential for drawing up tax returns, whether in Luxembourg or, where applicable, in the country of residence of the employees, especially for cross-border workers.
Who must make a declaration in Luxembourg?
Resident workers:
- You or your spouse receive income that is not subject to withholding tax (e.g. rental).
- You or your spouse receive dividends > EUR 1,500 per year.
- Your taxable salary or that of your spouse exceeds 100,000 EUR / year.
- You have several employers or your spouse receives a salary, pension or directors fees and your salary exceeds EUR 36,000/year.
We would like to draw your attention to the fact that you will have to declare all of the household's worldwide income, including the income of minor children.
Cross-border workers:
- You or your spouse receive Luxembourg income that is not subject to withholding tax (e.g. rental).
- You or your spouse receive dividends from Luxembourg sources > EUR 1,500/year.
- Your Luxembourg taxable salary or that of your spouse exceeds EUR 100,000 / year.
- You or your spouse have several Luxembourg employers, or receive a Luxembourg salary, pension or directors' fees, and your total income exceeds EUR 36,000 per year.
- You are applying for joint taxation at the overall rate or have been taxed at the overall rate during the year.
We would like to draw your attention to the fact that you will have to declare your worldwide income if you apply for the assimilation of a Luxembourg resident in order to take advantage of tax class 2 as well as various deduction possibilities.
We remind you that it is mandatory to file a tax return in your country of residence, regardless of the possible obligation to file a tax return in Luxembourg.
Any failure to do so can lead to a tax adjustment, can go back 10 years.
And the others?
In Luxembourg, it is possible to file an optional return to take advantage of deductions or more attractive taxation.
- You are in a civil partnership, married to an EU civil servant or cross-border worker taxed in class 1 during the year and wish to take advantage of the tax class 2 scale.
- You would like to assert your debtor interests in relation to your main residence.
- You want to take advantage of the allowances and deductions for:
- Consumer loan Interests,
- Insurance contributions (life, health, pension and others),
- Contributions to a Homing Saving Plan,
- Allowances to ex-spouses or children outside the household,
- Overtime allowances imposed in your country of residence,
- Single-parent allowances,
- Domestic or childcare expenses,
- Costs of procedures, illness or supporting family members in need,
- …
Contact
Our Personal Tax (incometax@lu.gt.com) team can assist you in optimizing your tax situation and assist you with all tax issues in Luxembourg. We offer information sessions or tailor-made training for your employees.
You can also benefit from advantageous conditions reserved for our partners' employees.