Any married taxpayer or who is getting married during the year, whether resident or non-resident.

Implications of marriage for resident taxpayers

If you are resident taxpayers who are already married at the beginning of the year or who get married during the year, you are in principle taxed in tax class 2.

In tax class 2, tax is calculated using the 'splitting' method:

1. your income is aggregated;
2. this aggregate income is 'split' in 2 halves;
3. the base rate in class 1 is applied to each half;
4. the tax thus determined is doubled.

As jointly taxed taxpayers, you are jointly and severally liable for the payment of tax.

Implications with respect to tax cards (employees or pensioners)

Taxpayers who are already married at the beginning of the year

As resident taxpayers who are either salaried employees or pensioners and who are married at the beginning of the tax year, you receive a tax card for each employment or each Luxembourg pension, in accordance with the terms of tax class 2 if you are taxed jointly.

You may however choose to be taxed separately (pure individual taxation or reallocation), according to tax class 1. Your tax card(s) will be automatically updated each time.

The choice of the tax method for a given year (N) can be made or renewed online via MyGuichet.lu until 31 December of the following year (N+1). Past that date, your last choice made becomes irrevocable.

Taxpayers who get married during the year

As taxpayers who are either salaried employees or pensioners in Luxembourg and who get married during the year, you receive a tax card reflecting your situation as of 1 January for each employment or each pension at the beginning of the year. Following the marriage, the cards will be automatically updated.

Since the 2018 fiscal year, you may however choose to be taxed separately (pure individual taxation or reallocation), according to tax class 1. Your tax card(s) will be automatically updated each time.

The choice of the tax method for a given year (N) can be made or renewed online via MyGuichet.lu until 31 December of the following year (N+1). Past that date, your last choice made becomes irrevocable.

Practical information regarding the withholding tax

As soon as your employer or the pension fund receives the card, the new situation may be taken into consideration when calculating the withholding tax. The change of tax class or rate on the tax card is taken into consideration from the new validity date on the card.

In the case of joint taxation, only one of the spouses is taxed in tax class 2. The withholding tax for the other spouse is calculated by applying the fixed rate of 15 %. This may result in the spouses having to pay a significant amount in additional tax upon receipt of their tax assessment. To avoid having to pay this additional tax once a year, the ACD recommends to declare any changes in revenues received and, if applicable, to allow for quarterly advance payments to be set.

In the case of individual taxation:

• either tax class 1 is applied to each of you;
• or you are taxed at the rate shown on your personal tax card.

Adjustments to withholding tax

As married taxpayers, you may adjust your withholding tax by filing an income tax return or, in the absence of a filing requirement, an annual adjustment.

In doing so, your income will be taxed based on tax class 2 criteria for the entire year, effective retroactively as of 1 January.

Implications of marriage for non-resident taxpayers

If you are non-resident taxpayers who are already married at the beginning of the year or who get married during the year, you are in principle taxed in tax class 1.

You have however the option of applying to be taxed jointly in tax class 2, provided you have opted to be treated as a resident taxpayer.

In tax class 2, tax is calculated using the 'splitting' method:

1. your income is aggregated;
2. this aggregate income is 'split' in 2 halves;
3. the base rate is applied to each half;
4. the tax thus determined is doubled.

As jointly taxed taxpayers, you are jointly and severally liable for the payment of tax.

Implications with respect to tax cards (employees or pensioners)

Taxpayers who are already married at the beginning of the year

As non-resident taxpayers who are either salaried employees or pensioners and who are already married at the beginning of the tax year, you receive a tax card for each employment or each Luxembourg pension, in accordance with the terms of tax class 1 and you are taxed separately.

To request the modification of a tax card, you can send the duly completed Form 164 NR to the Luxembourg Non-residents RTS Tax Office, along with a copy of your marriage certificate.

As of the fiscal year 2018 and provided you meet the conditions to be treated as resident taxpayers, you can also choose to be taxed:

• jointly according to the tax rate in class 2; or
• purely individually according to the tax rate in class 1; or
• individually with reallocation according to the tax rate in class 1.

You will then be entitled to the same legal provisions, deductions, allowances and credits as resident taxpayers.

The choice of the tax method for a given year (N) can be made or renewed online via MyGuichet.lu until 31 December of the following year (N+1). Past that date, your last choice made becomes irrevocable.

Your tax card(s) will be automatically updated each time.

Taxpayers who get married during the year

As non-resident taxpayers who are either salaried employees or pensioners and who get married during the year, you must inform the ACD of your change of marital status by sending the duly completed 164 NR form to the Non-Residents RTS Tax Office, along with a copy of your marriage certificate.

You receive a tax card for each employment or for each pension, according to the terms of tax class 1 and you are taxed separately.

As of the fiscal year 2018 and provided you meet the conditions to be treated as resident taxpayers, you can also choose to be taxed:

• jointly according to the tax rate in class 2; or
• purely individually according to the tax rate in class 1; or
• individually with reallocation according to the tax rate in class 1;

while being entitled to the same legal provisions, deductions, allowances and credits as resident taxpayers.

The choice of the tax method for a given year (N) can be made or renewed online via MyGuichet.lu until 31 December of the following year (N+1). Past that date, your last choice made becomes irrevocable.

Your tax card(s) will be automatically updated each time.

Practical information regarding the withholding tax

As soon as your employer or the pension fund receives the card, the new situation may be taken into consideration when calculating the withholding tax. The change of tax class or rate on the tax card is taken into consideration from the new validity date on the card.

In the case of joint taxation of a married non-resident,, the rate in tax class 2 applies to each of the employed or retired spouses. The deduction calculated by applying this estimated tax rate may result in an additional tax or a tax refund payable upon receipt of the tax statement. To avoid having to pay an additional tax, the ACD recommends to declare any changes in revenues received and, if applicable, to allow for quarterly advance payments to be set.

In the case of individual taxation, you are taxed at the rate shown on your tax card, which is calculated according to class 1.

Adjustments to withholding tax

As married taxpayers, you may adjust your withholding tax by filing an income tax return or, in the absence of a filing requirement, an annual adjustment.

In doing so, your income will be taxed based on tax class 2 criteria for the entire year, effective retroactively as of 1 January.

Implications of marriage for a married couple of whom one is a resident taxpayer and the other a non-resident

Unless you actually live separately, you are also taxed jointly upon joint application. For this to apply, one of you must be a resident taxpayer and the other a non-resident provided that the person who resides in Luxembourg earns at least 90 % (threshold) of the professional income of the household in Luxembourg during the tax year.

In tax class 2, tax is calculated using the 'splitting' method:

1. your income is aggregated;
2. this aggregate income is 'split' in 2 halves;
3. the base rate in class 1 is applied to each half;
4. the tax thus determined is doubled.

As jointly taxed taxpayers, you are jointly and severally liable for the payment of tax.

As of the 2018 fiscal year, you may however choose to be taxed separately (pure individual taxation or reallocation), according to tax class 1.

Implications with respect to tax cards (employees or pensioners)

Taxpayers who are already married at the beginning of the year or who get married during the year

As taxpayers who are either salaried employees or pensioners, of whom one is a resident taxpayer and the other a non-resident, you receive a tax card for each employment or Luxembourg pension, according to the terms of tax class 1 and you are taxed separately.

Upon joint request, you can request to be taxed jointly according to the terms of tax class 2, provided that the resident spouse earns at least 90 % of the household's professional income in Luxembourg during the tax year.

To request the modification of your tax card, you can send the duly completed Form 164 NR to the competent RTS Tax Office, along with a copy of your marriage certificate.

As of the fiscal year 2018, you can also choose to be taxed:

• purely individually according to the tax rate in class 1; or
• individually with reallocation according to the tax rate in class 1.

The choice of the tax method for a given year (N) can be made or renewed online via MyGuichet.lu until 31 December of the following year (N+1). Past that date, your last choice made becomes irrevocable.

Your tax card(s) will be automatically updated each time.

Practical information regarding the withholding tax

As soon as your employer or the pension fund receives the card, the new situation may be taken into consideration when calculating the withholding tax. The change of tax class or rate on the tax card is taken into consideration from the new validity date on the card.

Adjustments to withholding tax

As married taxpayers, you may adjust your withholding tax by filing an income tax return or, in the absence of a filing requirement, an annual adjustment.

In doing so, your income will be taxed based on tax class 2 criteria for the entire year, effective retroactively as of 1 January.

Extra-professional tax allowance

As married taxpayers who are taxed jointly, you benefit from an extra-professional allowance of EUR 4,500 per year. Where the tax liability does not cover the whole year, the allowance is reduced to EUR 375 per full month of tax liability.

If you opt for pure individual taxation or individual taxation with reallocation of income, you can also obtain an extra-professional allowance of EUR 2,250 for the whole year, and EUR 187.50 per whole month if the activity has not been exercised throughout the year.

As non-resident taxpayers, you can only claim this allowance if you have opted to be treated as a Luxembourg resident for tax purposes.

The extra-professional allowance applies to spouses:

• who both earn income from a professional activity in Luxembourg or abroad - business profits, agricultural or forestry profits, earnings from self-employment or income from paid employment - and who are enrolled in a mandatory social security scheme;
• where one spouse earns business profits or earnings from self-employment and the other spouse is registered as an assisting spouse;
• upon request, when one of the spouses has had an income from pensions or annuities for less than 3 years at the beginning of the tax year, and the other spouse has a professional income.

Procedures

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