Withholding tax on salaries

The income tax due by the employee is deducted from the salary by the employer who is responsible for paying it to the Luxembourg Inland Revenue.

The tax rate indicated on the tax card given to the employer each year by the employee is used to calculate the amount of withholding tax at source.

The employer must meet certain deadlines for declaring and paying the withholding tax on salaries to the Luxembourg Inland Revenue (Administration des contributions directes).

Who is concerned

 

Preliminary steps

The declaration and payment of withholding tax on salaries implies that:

  • there is a working relationship between the employer and his employee (relationship of dependence) ;
  • the employee has handed his tax card to his employer.
    If this is not the case, the employer is required to apply the maximum tax rate which may not be lower than 33 %.

How to proceed

When to declare and pay withholding tax

Every employer is required to declare and pay the tax which he has deducted from the salaries paid to employees.

The frequency for declaring and paying withholding tax depends on the total amount of withholding tax that the employer has transferred during the month in progress:

Frequency of declaration and payment

Total deductions for the month

Frequency of declaration and payment

Declaration and payment to be carried out for the …

From EUR 750

monthly

10th of the following month

From EUR 75 to EUR 750

quarterly

10th of the month following the quarter

Less than EUR 75

annually

10th of the month following the tax year

The withholding tax on salaries must be declared and paid within 10 days of the end of the declaration period.

For example:

An employer has deducted the following taxes from employee salaries in March:

Amount of tax deducted:

  • Employee 1: EUR 80.65
  • Employee 2: EUR 105.20
  • Employee 3: EUR 65.20

In total, the employer has deducted EUR 251.05 in income tax. As this amount is between EUR 75 and EUR 750, the employer must declare and pay the withholding tax on salaries on a quarterly basis. Thus, the employer must declare and pay the tax withheld for the months of January, February and March on the 10th of the month following the quarter, i.e. on 10 April at the latest (January to March quarter).

Procedure for the declaration and payment of withholding tax

In order to declare and pay withholding tax on salaries, the employer must:

  • submit a declaration of withholding tax on salaries via MyGuichet.lu or via form 950 in a timely manner;
  • pay the amount stated on the declaration within the assigned deadline to the competent tax office, and indicate the business's tax identification number, the period covered by the withholding tax declaration as well as the reference number of the declaration completed via MyGuichet.lu.

Example:

Mr X, employer, usually pays more than EUR 750 per month in withholding tax. Each month, he submits the withholding tax declaration and caries out the payment separately. The withholding tax for January is declared on 1 February and paid on 9 February.

Even if no withholding tax was deducted during a specific period of time, the employer must make a declaration stating, in this case, that no tax was deducted.

The employer who pays salaries that are not subject to withholding tax may, on request, be exempt from the obligation of making periodic withholding tax declarations. The request must be sent to the competent RTS office (Retenue d'impôt sur les Traitements et les Salaires - withholding tax on wages and salaries) which is determined by the geographical location of the registered office of the business.

Any failure or delay to declare or pay the withholding tax may result in penalties.

Forms / Online services

Déclaration de la retenue d'impôt sur rémunérations et des crédits d'impôt bonifiés

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Déclaration de la retenue d'impôt sur rémunérations et des crédits d'impôt bonifiés

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Déclaration de la retenue d'impôt sur rémunérations et des crédits d'impôt bonifiés

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

Retenue d'impôt sur rémunérations et des crédits d'impôt bonifiés - déclaration 950 FD

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Who to contact

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