Declaration of withholding tax on directors' fees

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Déclaration de la retenue d'impôt sur les tantièmes
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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

Online services

Déclaration de la retenue d'impôt sur les tantièmes

Downloadable forms

Note: view tips for using PDF forms.

Declaration of the withholding tax on directors fees allocated by the State, the municipalities, Luxembourg public institutes or public or private collective entities with their registered office or head office in Luxembourg

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Who to contact

Luxembourg Inland Revenue (ACD)

Related procedures and links

Links

Further information

Publications

Legal references

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