Taxpayer employed in Luxembourg, whether resident or frontier worker, can benefit from a set of deductions allowing the reduction of his taxable income and therefore of his tax.
To benefit from these deductions, the frontier worker must meet one of the tax assimilation’s conditions, i.e:

  • have at least 90% of his worldwide income taxable in Luxembourg1 (or 50% of the household’s professional income taxable in Luxembourg for a Belgian resident), knowing that the income of the first 50 days taxable abroad under a tax treaty is assimilated to income taxable in Luxembourg.

or

  • net foreign income less than €13,000 per year1.

In most cases, the taxpayer claims the deduction of his expenses the year following the payment through the filing of the income tax return or the withholding tax adjustment (simplified tax return).

The resident taxpayer can request these deductions immediately through his tax card (by completing, at the beginning of the year, the form 164R) and thus reduce his monthly withholding tax2.

The deduction of these expenses is limited and cannot exceed a specific ceiling applicable for each type of expenses.

1 For married/partnered taxpayers, this condition have to be met by one of spouses working in Luxembourg.
2 The non-resident taxpayer can only claim children’s alimony (via the form 164NR).

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