A certificate or a confirmation of tax residence is a document, which attests that the income beneficiary is a tax resident in Luxembourg. This certificate is issued by the Luxembourg Inland Revenue (Administration des contributions directes - ACD).
There are currently more than 80 different bilateral agreements in force in Luxembourg. The purpose of tax agreements is to avoid the legal double taxation with respect to direct taxes.
Resident taxpayers in Luxembourg who are subject to income tax on their worldwide revenues (domestic and foreign income).
Regardless of their address, natural persons are theoretically considered non-resident taxpayers in Luxembourg as long as they possess a centre of vital interests abroad, outside Luxembourg.
The certificate is issued free of charge.
Applicants must submit their application to the competent service at the Luxembourg Inland Revenue (ACD), i.e. the Department of natural persons (Section des personnes physiques) or the Corporate Department (Section des sociétés). The applicant must indicate the following:
Applications for a tax residence certificate from Undertakings for Collective Investments should be addressed to the Corporate Tax Department 6 (Bureau d'imposition Sociétés 6) at the ACD.
Applications for tax residence certificates from Undertakings for Collective Investments must be submitted together with a certificate from the Financial Sector Supervisory Commission (Commission de Surveillance du Secteur Financier - CSSF) attesting that the applicant is registered as a SICAV/SICAF and subject to the CSSF's supervision.
Before issuing a certificate, the ACD reserves the right to verify if the applicant does not have any outstanding tax liabilities.
The Luxembourg Inland Revenue may request additional supporting documents as part of the process of verifying any information, statements, applications, declarations, claims or appeals submitted to its offices.
In the event of doubt, the certificate of tax residence can be denied and the tax status as a resident or non-resident person will be determined at the time their first income tax return is being submitted.