In Luxembourg, the tax on employees’ income is withheld directly by the employer.
To withhold tax at source and / or possibly pay the tax credit to the employee, the employer must hold a tax card. The employee must therefore return it to his employer upon receipt by the administrative services.
The tax card or tax deduction sheet identifies the tax class of the employee or pensioner.
Each job or pension is subject to a tax card.
These tax deduction sheets are issued by the Administration des Contributions Directes (ACD) once a year at the beginning of the year or in the event of a change of personal situation (marriage, birth of a child, etc.).
The resident taxpayer employee who occupies for the first time a job in Luxembourg sees his tax deduction form issued without intervention and without his request by the Direct Taxation Administration, after affiliation to the CCSS directly by his employer, in a maximum of 30 working days.
All tax deduction sheets must be sent by post to the employee’s home.
Even if wages are taxed at source, you still have to report all your income once a year to the tax authorities. To find out more about the Luxembourg tax return, click here.