The information provided on this page applies to:

• resident taxpayers who receive dividends from Luxembourg and/or foreign companies on shares held in their personal investment portfolios;
• non-resident taxpayers who have opted to be treated as Luxembourg residents for tax purposes and who receive dividends from Luxembourg and/or foreign companies on shares held in their personal investment portfolios.

How to report dividend income on tax returns as a resident taxpayer

Resident taxpayers who file tax returns must report any dividends received during the year on page 9 of the tax return ('model 100' form).

Taxpayers must also fill in the 'model 180' form when they receive dividends distributed by foreign companies located in countries with which Luxembourg has entered into double taxation avoidance agreements. The information is entered as follows:

• column 1: the country of origin of the income;
• column 2: the type of income (dividends);
• column 3: the gross amount of dividends paid to the taxpayer;
• column 4: for dividends covered by the 50 % exemption, 50 % of the gross amount of eligible dividends paid to the taxpayer;
• column 5: expenses incurred for the acquisition of income (for example, safe-keeping charges or exchange fees). When the dividends are eligible for the 50 % exemption, 50 % of the expenses for the acquisition of income may be deducted;
• column 7: the net dividend amount (total of columns 3 to 5), reported in box 903 or 904 of the tax return;
• columns 8 and 9: the foreign withholding tax amount and the amount available as a tax credit.

When filling in the tax return, taxpayers must also report the following information, based on the documentation provided by their bank(s), whether located in Luxembourg or abroad:

• box 901 or 902 (section B): 50 % of the gross amount of dividends paid by fully taxable Luxembourg capital stock companies;
• box 903 or 904 (section C – row a): the amount of dividends paid by companies in countries with which Luxembourg has entered into double taxation avoidance agreements (column 7 of the ‘model 180’ form);
• box 907 or 908 (section C – row b): the gross amount of dividends received from companies in countries not covered by box 903 or 904. If the taxpayer needs to enter information in box 907 or 908, the following information must be provided on a separate sheet:
  • the country of origin of the dividends;
  • the gross amount of dividends received;
  • the expenses incurred for the acquisition of income (for example, safe-keeping charges or exchange fees);
• box 927 or 928: deductible expenses for the acquisition of income, which may include bank fees, custodial charges, interest expenses, foreign taxes not credited, etc. A minimum flat-rate allowance of EUR 25 per year applies for all investment income received during the year reported in sections B, C and D combined (for further information, see the pages 'Identifying and reporting interest paid by a Luxembourg bank' and 'Identifying and reporting interest paid by a foreign bank'). This flat-rate allowance is doubled for married couples or civil partners filing joint tax returns. If the expenses for the acquisition of income are greater than the flat-rate allowance of EUR 25, the actual amount of these expenses should be reported;
• box 931 or 932: an exemption of EUR 1,500 per year applies to all investment income (taxable interest and dividends) received during the year reported in sections B, C and D combined (for further information, see the pages 'Identifying and reporting interest paid by a Luxembourg bank' and 'Identifying and reporting interest paid by a foreign bank'). This amount is doubled for married couples or civil partners filing joint tax returns;
• box 939 (withholding tax section): the taxpayer must enter the amount corresponding to the 15 % withholding tax deducted in Luxembourg on dividends received from Luxembourg companies;
• box 941 (withholding tax section): the taxpayer must enter the amount of foreign tax credits, depending on the applicable double taxation avoidance agreements. This amount must also be entered in column 9 of the 'model 180' form.

How to report dividend income on tax returns as a non-resident taxpayer

Only taxpayers who opt for treatment as Luxembourg residents for tax purposes must report dividends received during the year from Luxembourg and/or foreign companies on page 9 of their tax return ('model 100' form).

Non-resident taxpayers are advised to fill in and submit the 'model 180' form for all dividends distributed by Luxembourg companies or foreign companies located in countries with which Luxembourg has entered into a double taxation avoidance agreement.

The information is entered as follows:

• column 1: the country of origin of the income;
• column 2: the type of income (dividends);
• column 3: the gross amount of dividends paid to the taxpayer;
• column 4: for dividends covered by the 50 % exemption, 50 % of the gross amount of eligible dividends paid to the taxpayer;
• column 5: expenses incurred for the acquisition of income (for example, safe-keeping charges or exchange fees). When the dividends are eligible for the 50 % exemption, 50 % of the expenses for the acquisition of income may be deducted;
• column 7: the net dividend amount (total of columns 3 to 5), reported in box 905 or 906 of the tax return;
• columns 8 and 9: the foreign withholding tax amount and the amount available as a tax credit.

When filling in the tax return, taxpayers must also report the following information, based on the documentation provided by their bank(s), whether located in Luxembourg or abroad:

• box 905 or 906 (section C – row a): 50 % of the gross amount of dividends paid by fully taxable Luxembourg companies, as well as the amount of dividends paid by companies in countries with which Luxembourg has entered into double taxation avoidance agreements (column 7 of the 'model 180' form);
• box 909 or 910 (section C – row b): the gross amount of dividends received from companies in countries not covered by box 905 or 906. If the taxpayer needs to enter information in box 909 or 910, the following information must be provided on a separate sheet:
  • the country of origin of the dividends;
  • the gross amount of dividends received;
  • the expenses incurred for the acquisition of income (for example, safe-keeping charges or exchange fees).
• box 929 or 930: deductible expenses for the acquisition of income, which may include bank fees, custodial charges, interest expenses, foreign taxes not credited, etc. A minimum flat-rate allowance of EUR 25 per year applies for all investment income received during the year reported in sections B, C and D combined (for further information, see the pages 'Identifying and reporting interest paid by a Luxembourg bank' and 'Identifying and reporting interest paid by a foreign bank'). This flat-rate allowance is doubled for married couples or civil partners filing joint tax returns. If the 'expenses for the acquisition of income' are greater than EUR 25, the amount of actual fees should be reported;
• box 933 or 934: an exemption of EUR 1,500 per year applies to all investment income received during the year (taxable interest and dividends) reported in sections B, C and D combined (for further information, see the pages 'Identifying and reporting interest paid by a Luxembourg bank' and 'Identifying and reporting interest paid by a foreign bank'). This amount is doubled for spouses or partners reporting jointly;
• box 939 (withholding tax section): the taxpayer must enter the amount corresponding to the 15 % withholding tax deducted in Luxembourg on dividends received from Luxembourg companies;
• box 941 (withholding tax section): the taxpayer must enter the amount of foreign tax credits, depending on the applicable double taxation avoidance agreements. This amount must also be entered in column 9 of the 'model 180' form.

Procedures

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