What tax deductibility ?

  1. Pension insurance premiums cannot exceed 20% of net income(see income taken into account below)
  2. No deductibility limit for premiums relating to provident insurance(death or disability)
  3. Deductibility is provided for in art. 110 LIR as Special Expenses
  4. The flat tax of 20% on insurance premiums paid to an RCPI is not a deductible expense for the self-employed (art. 152 3° al. 15 LIR)
  5. The contribution base for compulsory social insurance is therefore defined before deduction of special expenses. Retirement and provident insurance premiums (death and disability) paid into an RCPI remain subject to mandatory social charges.
  6. The RCPI manager’s certificate must be attached to the tax returnto benefit from tax deductibility for the self-employed person


1 | The income that can be used as a contribution base for an RCPI is as follows :


  1. Net income* within the meaning of Art. 10 LIR, numbers 1 to 3 :
    1. The business profit
    2. Agricultural and forestry profit
    3. Profit from the exercise of a liberal profession Profit from the exercise of a liberal profession.
      The taxpayer must be personally affiliated to this income as a compulsory insured under a Luxembourg or foreign social security scheme covered by a bi- or multilateral social security instrument.
      * income net of deductible expenses (before deduction of special expenses).
  2. Income resulting from salaried employment within the meaning of Art. 95 LIR, number 6 either resulting from the daily management of a director, partner, manager, agent or similar in a company) and insofar as this income has not been taken into account for the financing of a supplementary scheme (RCP) put in place by the company for which the taxpayer carries out the day-to-day management.


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Disclaimer :

The responsibility of the author of the article cannot be engaged in the event of inaccuracies or omissions. Despite the care taken with the information provided, this new legislation is subject to constant change. Only a personalized interview will make it possible to verify the eligibility of the self-employed person for an RCPI and their income that can serve as a contribution base for an RCPI.