Temporary increase of the tax relief for domestic service expenses for 2020

Coronavirus / Covid-19

In order to encourage the preservation of the working relationship between taxpayers and the household helpers (male/female cleaners or other domestic helpers) who carry out domestic tasks in the tax payers' private households, the maximum lump-sum tax allowance is increased for the 2020 tax year (tax return or annual adjustment to be completed in 2021). As a result, it has been increased from EUR 5,400 to EUR 6,750.

This measure concerns any taxpayers who:

  • have incurred domestic expenses for maids and other household helpers:
    • either directly;
    • or indirectly through a company or an association;
  • have declared said household help to the Joint Social Security Centre (CCSS) for the period from April to at least the end of December 2020.

This tax allowance cannot exceed:

  • the expenses actually incurred; nor
  • the sum of:
    • EUR 450 per month for the months of January 2020 to March 2020;
    • EUR 600 per month for the months of April 2020 to December 2020.

Consult the Luxembourg Inland Revenue's website on this subject to find out about the cumulative expenses and possible rebates.

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