Choosing between joint taxation or individual taxation as a married taxpayer

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Last updated more than 5 years ago

Certain measures of the recent tax reform have a direct impact on married taxpayers with regard to their withholding tax card (tax card) for salaries and pensions (RTS) and also in matters of taxation by assessment.

As from the tax year 2018 (1 January 2018), certain married taxpayers will have the possibility to choose between joint or individual taxation.

Who is concerned

Married taxpayers can choose between joint or individual taxation, whether they are resident or non-resident, provided the conditions for tax assimilation are met.

Prerequisites

In order to choose between joint or individual taxation, the spouses must submit and sign a joint application.

Married resident taxpayers do not need to fulfil any other requirement.

Married non-resident taxpayers, provided they are eligible, must choose to be taxed as resident taxpayers.

Deadlines

For any given fiscal year N, a choice made after March 31 N + 1 is no longer taken into account and, beyond that date, the choice made before that date is irrevocable.

Example: for the tax year 2018, the cut-off date is 31 March 2019.

Note that the choices submitted via MyGuichet.lu are given priority by the Administration des contributions directes (Luxembourg Inland Revenue).

How to proceed

Resident taxpayers: principle

From 1 January 2018 onwards, resident taxpayers who are married or who are getting married in the course of the year, will have the choice between:

joint taxation, on the basis of tax class 2;
pure individual taxation, on the basis of tax class 1 for each spouse;
individual taxation with reallocation, based on tax class 1 for each spouse, with a common rate recorded on each of the spouses' tax card.

With respect to individual taxation, when there are children in the household, tax class 1 does not change, but the other advantages arising from the presence of children in the household are taken into account in accordance with the conditions linked to the type of taxation chosen.

Non-resident taxpayers: principle

As of 1 January 2018, non-resident married taxpayers will be assigned tax class 1 and will be taxed on their Luxembourgish income only, if they fail to make a joint decision.

However, if they meet the conditions and choose to be treated as resident taxpayers, they will be able to choose between:

joint taxation, on the basis of tax class 2;
pure individual taxation, on the basis of tax class 1 for each spouse;
individual taxation with reallocation, on the basis of tax class 1 for each spouse.

The choice between joint taxation, pure individual taxation or individual taxation with reallocation of income results in a tax rate that will be recorded on each spouse's tax card (depending on the case, this rate can be common to both spouses or individual).

In the case of individual taxation, tax class 1 does not vary if there are children in the household, but the other advantages arising from their presence in the household are taken into account in accordance with the conditions linked to the type of taxation chosen.

Taxpayers who have chosen to be treated as resident taxpayers are required to file a tax return.

How to notify the authorities of your choice

The choice of type of taxation can be made within, the set time period:

via an online procedure without LuxTrust authentication (Request for individualization / RTS rate), which is available on Guichet.lu and recommended by the Luxembourg Inland Revenue (ACD);
by sending a specific application to the relevant department.

If no choice is made in the course of tax year N, the taxpayer can still make his or her choice after the end of the tax year at the time of filing of their tax return. The deadline for making the choice is set to 31 March of the year N+1.

If the taxpayers fail to make a choice, they will automatically be allocated tax class 1 and will be taxed on their Luxembourg-source income only.

Please note that choices submitted via the online procedure will be given priority by the Luxembourg Inland Revenue (ACD).

Forms / Online services

Pour les contribuables mariés : demande de simulation ou d'individualisation / taux RTS

Accéder à la démarche

Für verheiratete Steuerpflichtige: Simulation oder Antrag auf Einzelveranlagung / Steuersatz RTS

Den Vorgang öffnen

Pour les contribuables mariés : demande d'individualisation et/ou d'assimilation

Télécharger le formulaire

Bei verheirateten Steuerpflichtigen: Antrag auf Einzelveranlagung und/oder steuerliche Gleichstellung

Das Formular herunterladen

Who to contact

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Luxembourg Inland Revenue (ACD)

45, boulevard Roosevelt
L-2982 Luxembourg
Luxembourg

Please click on the link below to find the competent department.

Luxembourg Inland Revenue (ACD) Path to Luxembourg Inland Revenue (ACD)

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