Frontaliers mariés : que risquez-vous si vous ne respectez pas le délai du 31 octobre 2017 pour répondre au courrier RTS reçu de l’administration fiscale ?

by Renaud Glenisson | in fiscalité | on 1 octobre 2017

You have already received your letter RTS by mail from the tax administration.

Replying to this letter is very important in order to let Luxembourg tax administration calculate your monthly withholding tax on your wage (rate RTS or « Retenue sur Traitements et Salaires »). The tax authorities will issue your 2018 income tax card with the right percentage monthly tax withholding.

Thanks to this percentage, the amount of monthly tax restraints can be calculated and deducted from your payslip of January, 2018 and following ones.

See on this matter: « Married crossborder workers : what to respond if you received one of 150,000 tax withholding mails sent by the tax administration ? »

In this letter, the date of October 31st is mentioned as deadline for replying.

Last week, the ALEBA, the labor union of banks and insurance companies has even requested to delay this deadline by one month untill November 30th, 2017.

Actually, the date of October 31st was chosen only for practical reasons by the tax administration.

In every case will the tax administration handle your letter even if received after October 31st, 2017.

In case of late reception of your mail, the tax administration could not guarantee that your tax card will be issued on time in January, 2018 with the right monthly withholding tax rate percentage. In that case, you could receive a first tax card in tax class 1 followed a few time later by a second income tax card with the right withholding tax rate percentage.

Thus this date is not compulsory unlike that of March 31st of the year which follows tax year for the choice of the way of taxation : collective, pure individual or individual with reallocation. In other words, modifying your way of taxation from previous tax year after that date is not possible anymore.

If you again wish more information on this topic, consult us by completing our form

Or directly here:

15 Sep

Frontaliers mariés : que devez-vous faire si vous avez reçu un des 150.000 courriers RTS envoyés par l’administration fiscale ?

by Renaud Glenisson | with 1 Comment | in fiscalité | on 15 septembre 2017

Assufisc-courrier RTS envoyés par l’administration fiscale

This montly tax withholding mail («Taux de Retenue sur Traitements et Salaires» or RTS letter) is sent to the married or in civil partnership crossborder workers to define their tax withholding rate percentage to be noted on their 2018 tax card. With this tax rate can be calculated the monthly tax withholding on your salary payslips starting on January 2018.

Provided you are in the conditions to be treated like a Luxembourgish resident (for more infos, read article « In 2018, married crossborder workers will face new tax rules »), you have the choice between three different options :

Option 1: agree with the tax withholding rate proposed by the tax administration expresses;
Option 2: ask for a tailor-made rate by providing the tax administration with your jncome in Luxemburg and abroad (incl. income earned by your spouse) ;
Option 3: no answer to the mail with automatic registration of class 1 on your 2018 tax card.

Note that the tax administration will not mention anymore your tax class (1, 1a or 2) on your tax withholding card but directly your tax withholding rate percentage.

Between option 1 and 2, option 2 (tailor-made withholding tax rate percentage) should be preferred if you do not wish to repay an important amount when receiving your 2018 tax statement (for most of the cases, to be received in 2019).

Actually, the closer to your own 2018 Luxembourg income is the income earned by your spouse abroad in 2018, the more you will repay when receiving your annual tax statement in 2019.

In some cases, the pure individual taxation will be prefered to the collective way of taxation.

Fore more information, read « In 2018, income taxation will be more flexible in Luxembourg »

As independant tax consultants, we can advise you for optimizing your tax relieves and estimate your 2018 tailor-made rate wothholding tax rate percentage.

Book a meeting now via our form

or directly here:

10 Sep

En 2018, les frontaliers mariés ou pacsés devront faire face à une nouvelle fiscalité.

by Renaud Glenisson | with 2 Comments | in fiscalité | on 10 septembre 2017

The second wave of new tax rules will come into force in tax year 2018.

By default, married or in civil partnership crossborder workers will be registered in tax class 1 from tax year 2018 (i.e. the same tax class as the one for single taxpayer).

Under which conditions could you opt for being assimilated to a Luxembourg resident ?

For keeping their more favourable tax class 2, the married or in civil partnership crossborder workers must ask for being assimilated to a Luxembourg resident (in other words, being treated like a resident of Luxembourg) and comply therefore with one of the two following rules :

Principle at least 90 % of your world income is taxable in Luxembourg*;
New measure : if you have other net income which is non-taxable in Luxembourg, up to an amount of € 13,000 max.
- Example:
  - Luxembourg taxable income: €85,000 and income not taxable in Luxembourg: €12,000
  - Total worldwide income: €97,000 => taxable in Luxembourg: 88%
  - As < 90% of worldwide income taxable in Luxembourg => principle: tax class 1
  - Based on new measure: still tax class 2 as non-taxable income < €13,000.

* This condition must be filled individually by only the spouse who is working in Luxembourg or collectively (taken into account all revenue in Luxembourg or abroad).

For the Belgian crossborder workers only : they have to earn at least 50% of their professional income in Luxembourg to be tax assimilated to Luxembourg residents.

What are the consequences of the tax assimilation ?

You have to declare your entire income earned in Luxembourg and abroad (even if the Luxembourg does not have the tax right on this income).

By double taxation conventions, this foreign income is tax-exempt in Luxembourg but is taken into account for calculating a global effective tax rate (based on the household’s worlwide income).

Practically, positive foreign income results to a higher taxation on Luxembourg income and a negative foreign income reduces the tax burden in Luxembourg.

By choosing to be tax assimilated, married or in civil partnership taxpayers can benefit from deductions and relieves of taxation. For more information, click on « Approaching end of year, what may I deduct in my tax return ? »

Based upon your personal tax situation, we can:

simulate your taxation by opting for a collective taxation or a pure individual taxation ;
optimize our tax return by advising you on the various tax relieves (special expenses and extraordinay costs ;
complete your annual tax declaration.

Book a meeting by filling now our form

or directly here

01 Sep

Réforme fiscale : la fiscalité directe sera plus flexible en 2018.

by Renaud Glenisson | with 1 Comment | in fiscalité | on 1 septembre 2017

Assufisc-reforme-fiscale-imposition collective,, individuelle avec réallocation et individuelle pure

Next to the tax reform, workers and pensioners having worked in Luxembourg either resident or non-resident taxpayers will have the choice betweeen three different ways of taxation in tax year 2018 :

Source : February 2^nd, 2017 ACD press conference

If you are resident taxpayer in Luxembourg, the fiscal reform does not require any particular conditions to be filled.

But if you are a non-resident taxpayer, you will have to comply with the conditions of the tax assimilation to be assimilated to a Luxembourgour resident (i.e. treated like a resident for the Luxembourg income taxation).

For more information on those conditions, read « In 2018, married crossborder workers will have to face new tax rules ».

The choice berween (pure or with reallocation) individual or collective imposition is to be made via a joint request to be signed by each spouse.

This choice must be made before March 31st of the year following the taxation year.

After that date, the choice cannot be changed anymore.

An online tool (available on www.guichet.lu) is available to make your tax choice. Tax administration informs that the tax answers sent by guichet.lu will be first handled.

If you do not have made your choice for a way of taxation, the choice remains also possible by filling your tax return (to be submitted to the tax administration before March 31st of the year following taxation year.

For optimizing your personal tax situation, book a meeting now using our form

or directly here:

ASSUFISC

« Régime complémentaire de pension agréé pour indépendants et professions libérales (RCPI) » : 1.- Le contexte

« Régime complémentaire de pension agréé pour indépendants et professions libérales (RCPI) » : 2.- Le régime complémentaire de pension pour travailleurs indépendants

« Régime complémentaire de pension agréé pour indépendants et professions libérales (RCPI) » : 3.- Deux catégories de personnes sont éligibles

Facturation sur mesure

Décompte annuel ou modération d’impôt célibataire ou couple

Annexe autre

Annexe 190

Couple pacsé avec 1 déclaration

Déplacement facturé à 60€

Déplacement facturé à 90€

Déclaration d’impôt Formulaire 100 Groupe de 4

Déclaration d’impôt Formulaire 100 Groupe de 3

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Étiquette : RTS