Most Read Contributor in Luxembourg, February 2017
Know your homes and loans
Are you aware that any contributions you've made to
qualifying home saving and loan schemes are tax-deductible on your
2016 Luxembourg individual income tax return? The deduction goes up
to €672 (the same amount extending to any spouse/partner in
the taxpayer's household, and the same amount again for each
child living in the household as well). We remind you to review
your 2016 contributions before year-end so that you can reach the
A footnote for next year: the amount deductible for home savings
plans (€672) will be increased to €1,344 for individuals
between 18 and 40 years old in 2017. For everyone else the ceiling
will remain €672.
Assure yourself on insurance
More potential tax deductions would come from premiums paid out
to qualifying life, death, accident, disability, sickness, or
third-party liability insurance. The same specs apply as to the
previous tip regarding a ceiling of €672, increasable for
spouses/partners and children. Any questions?
Give us a click.
Be interested in interest
Debit interest. Perhaps you've gone days, weeks, or months
without thinking about these two words.
But did you know that your debit interest on consumer loans,
credit cards, and debit bank accounts are tax-deductible on your
2016 individual income tax return in Luxembourg? Up to the tune of
€336, and the same amount again for spouses/children. A
further note: this ceiling will be merged with the ceiling for tax
deduction on insurance premiums: the combined annual ceiling will
be €672 per member of the household from 1 January 2017.
Pay attention to pensions
Your premiums for 3rd-pillar voluntary pension
On your 2016 Luxembourg individual income tax return, the
following ceilings apply separately to each spouse/partner:
This particular ceiling will rise in 2017: these premiums will
become deductible for all taxpayers up to €3,200 from 1
January 2017 onward.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
As the banking industry continues to be shaped by technological and regulatory forces, we’ve gathered our European Central Bank (ECB) experts to hold a conference about this changing landscape. KPMG’s ECB desk from Frankfurt will join our Luxembourg banking partners to unpack the latest news from the ECB, including regulations that will affect the future of banking.
We would be very pleased if you could attend this event, which will be held at our Luxembourg headquarters in Kirchberg on 30 March. The talk will begin at 5:00pm and last until 6:00pm, at which point the evening will be turned over to a networking session with drinks.
Please let us know if you are able to attend by using the registration button above (by 27 March, if possible).
We look forward to seeing you there!
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
The Common Reporting Standard (CRS) has been initiated by the Organization for Economic Cooperation and Development (OECD) aiming at improving international tax compliance and preventing tax evasion, through the automatic exchange of information between the countries that implement CRS.
The DITC has stated that it will issue updated CRS Guidance Notes in the first quarter of 2017 to cover the Regulations.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).