Declaration of withholding tax on directors' fees
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Persons who receive director's fees may be taxed in Luxembourg.
As of the first quarter 2019, the declaration of the withholding tax on directors' fees (form 510 bis) can be submitted electronically to the Luxembourg Inland Revenue (Administration des contributions directes - ACD).
Remuneration for the day-to-day management of a company is not covered by the concept of director's fees but this falls within the scope of income from paid employment.
Who is concerned
Director's fees from Luxembourg sources paid to persons holding the following positions may be subject to withholding tax:
- administrators (directors);
- auditors;
- persons performing similar tasks in corporations, limited liability companies, cooperative companies or other corporations.
These incomes are considered to be of indigenous source if the debtor is:
- the Luxembourg state;
- a Luxembourg commune; or
- a Luxembourg public-sector establishment; or
- a company under private or public law whose registered office or central administration is in Luxembourg.
Deadlines
The withholding tax on directors' fees must be declared - on paper or electronically - and paid within 8 days following the date of payment of the income.
How to proceed
Declaration and payment
The declaration can be sent by the debtor using the specific form or by electronic means.
The electronic transmission of withholding tax declarations for directors' fees via MyGuichet.lu can be made by an intermediary (agent, fiduciary or other) who acts on behalf of the debtor.
For the sake of convenience, the electronic procedure can be pre-filled using an XML file. XSD files that define the structure of the XML data can be downloaded from our "For more information" section, under "Publications".
The declaration must contain:
- the gross amount of directors' fees subject to tax;
- the amount of the deduction made;
- the payment date of the withholding tax to the competent tax collector.
The debtor of the directors' fees must indicate, for each beneficiary:
- the name and adress;
- the national identification number and date of birth;
- the gross amount of the directors' fees paid;
- the amount of the tax withheld.
The debtor of the directors' fees is personally responsible for the declaration and payment of the tax which they withheld or should have withheld.
Payment
The tax withheld is to be paid in a lump sum, without designation of the beneficiaries of the directors' fees.
Obligations
The debtor of the directors' fees must keep a withholding register which must list, in chronological order:
- the date when the directors' fees were made available;
- the gross amount of the directors' fees;
- the amount of tax deducted;
- for each beneficiary, the name and address, the gross amount of the directors' fees paid and the amount of the withholding tax applied;
- the payment date of the withholding tax to the competent tax collector.
Checks
In order to ensure the correct and precise collection of the tax deduction on directors' fees, the Luxembourg Inland Revenue can carry out controls regarding the regularity of the withholding tax on directors' fees.
If the tax has not been duly withheld or paid to the competent tax collection entity, the ACD establishes the missing amount, and issues the debtor with a statement indicating the tax charge, unless the tax has been duly declared.
The Treasury has the same rights of execution, privilege and mortgage with respect to the collection of the tax chargeable to the debtor of the directors' fees as for the collection of the income tax due by the debtor in a personal capacity.
Online services and forms
Who to contact
Luxembourg Inland Revenue (ACD)
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Luxembourg Inland Revenue (ACD)
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
Please consult the above website to find the competent department.
Related procedures and links
Links
Further information
Publications
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Descriptif du format XSD
sur le site de l'ACD
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Fichiers XSD définissant le dépôt XML
sur le site de l'ACD
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Exemple de fichier XML
sur le site de l'ACD
Legal references
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Directive 2011/16/UE du Conseil du 15 février 2011
relative à la coopération administrative dans le domaine fiscal et abrogeant la directive 77/799/CEE
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Loi modifiée du 4 décembre 1967
concernant l'impôt sur le revenu
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Loi modifiée du 29 mars 2013
relative à l'organisation du casier judiciaire et aux échanges d'informations extraites du casier judiciaire entre les États membres de l'Union européenne
