Personal taxation · Luxembourg
Commuting expenses deduction in Luxembourg
The tax deduction for an employee's commuting is based on flat-rate distance rules, not on total fuel costs or the means of transport chosen. Check your places of residence and work, the periods involved and what is already recorded under the FD code.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
A flat-rate approach
The regime does not consist of multiplying all the kilometres actually travelled by a freely chosen rate. The distance used and the units allowed follow the rules of the Luxembourg Inland Revenue (ACD).
Using an expensive car rather than public transport therefore does not automatically produce a higher deduction. Business travel expenses must be distinguished from the ordinary journey between home and work.
Addresses and changes
A new municipality of work, a change of employer or a change of address may justify checking the data on your tax withholding card. Teleworking and special situations must be examined under the applicable rules, without improvised corrections.
The FD code shown on the tax withholding card or certificate must be matched against the year and the periods. A distance calculated with a route-planning app is not necessarily the distance for tax purposes.
Fictitious example
An employee moved during the year but compares the deduction with the new distance over twelve months. This comparison can be misleading: the timeline and the data known to the tax office must be checked first.
Entering again a deduction already included in the withholding tax does not create a second refund. The annual effect depends on the difference actually corrected.
Documents
- Addresses and dates of change.
- Municipality or place of work according to the employer's documents.
- Tax withholding card and annual certificates.
- Breakdown of periods or particular circumstances requiring clarification.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
- ACD: employee income-related expenses
- ACD: deductions and Forms 100, 163, 164
- ACD: questions from resident taxpayers
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.