Declaration of withholding tax on supplementary pension schemes
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Some Luxembourg employers choose to set up a supplementary pension scheme (the 'second pillar' of pension insurance) for all of their employees or for only one category of their employees. By doing so, employers can grant their employees benefits intended to supplement those of the legal social security schemes for retirement, death, disability or survival (survivor's pension).
Any employer who has set up a supplementary pension scheme is required to:
- declare the tax withheld via MyGuichet.lu or a paper form; and
- pay this tax to the Luxembourg Inland Revenue (ACD).
The amended law of 8 June 1999 on supplementary pension schemes is known as the 'LRCP'.
The withholding tax on contributions paid to a supplementary pension scheme is 20%.
Who is concerned
Employers (natural or legal persons) who have set up a supplementary pension scheme.
Prerequisites
Financing the supplementary pension scheme
As an employer who chooses to set up a supplementary pension scheme (RCP), you can choose between two forms of financing:
- internal scheme: the contributions are entered as liabilities in the employer's balance sheet;
- external scheme, within the framework of a defined benefit or contribution scheme: premiums are paid to an insurance company or contributions are paid to a pension fund.
If the terms of the supplementary pension scheme put in place by their employer allows for it, the employees can make personal contribution payments to the scheme.
MyGuichet.lu business eSpace
In order to declare and pay the tax withheld on RCPs, you must have a MyGuichet.lu business eSpace.
How to create a business eSpace on MyGuichet.lu
There are 2 possible scenarios:
- You are a new user of MyGuichet.lu. You must:
- first register on MyGuichet.lu; and
- then create a business eSpace.
- You already have a private eSpace on MyGuichet.lu. You can directly create a business eSpace without having to register again.
Further information as well as tutorials in relation with the business eSpace are available in our dedicated help page.
How to proceed
Filing the application
To declare and pay tax withheld on supplementary pension schemes (RCP), you must:
- send a declaration of withholding tax on salaries via MyGuichet.lu or use form 960 (see 'Online services and forms') within the specified deadlines;
- pay the amount stated on the declaration within the specified deadline to the competent tax office, stating the company's tax number and the period covered by the withholding tax (e.g. AAAA FF XX XXX LRCP January 2025).
Declaration frequency
You can opt to file your declaration of withholding tax on supplementary pension schemes on a monthly, quarterly or annual basis.
Each declaration must be submitted to the Luxembourg Inland Revenue (ACD) no later than the tenth day of the month following the declaration period.
For example: the January 2025 declaration must be submitted and paid by 10 February 2025 at the latest.
Good to know
The supervision of supplementary pension schemes is the responsibility of the General Inspectorate of Social Security, which is the competent authority in this matter.
Online services and forms
Who to contact
Luxembourg Inland Revenue
-
Luxembourg Inland Revenue (ACD)
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
Please consult the above website to find the competent department.
General Inspectorate of Social Security
-
Ministry of Health and Social Security General Inspectorate of Social Security (IGSS)
- Address:
- 26, rue Zithe L-2763 Luxembourg Luxembourg
- Phone:
- (+352) 247 86 383
- Email address:
- igss@igss.etat.lu
- Website:
- https://igss.gouvernement.lu/en.html
Related procedures and links
Procedures
Links
Further information
sur le site de l'Administration des contributions directes (ACD)
Legal references
relative aux régimes complémentaires de pension
