Personal taxation · Luxembourg
Tax advance payments for individuals in Luxembourg
Tax advance payments are payments credited against the tax assessed for the year. They are separate from the tax withheld from salary. A drop in income may justify a reasoned request for a reduction, but you should not treat the advance payments as cancelled until an adjustment has been granted.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
The reference calendar
For income tax, the Luxembourg Inland Revenue (ACD) indicates quarterly due dates of 10 March, 10 June, 10 September and 10 December. Check the amounts and years shown on your documents.
The calendar for municipal business tax or net wealth tax is not the one for personal income tax. Do not apply a calendar intended for companies to your own file.
Why the amount may be out of step
The advance payment is generally calculated on the basis of the latest available assessment after crediting withholding tax, or on an estimate. A recent change in your situation may therefore not yet be reflected.
If your income changes, prepare an updated calculation with supporting documents: end of an activity, a change in rental income or another documented event. The request must explain why the expected amount differs from the reference used.
Fictitious example
A person stops an activity that had generated additional income. They can request an adjustment, but should not simply stop paying in the belief that the future tax return will correct all the consequences of the missed payments.
Keep the adjustment decision and check how the amounts already paid have been allocated. An advance payment made with the wrong reference can create a reconciliation problem separate from the tax calculation.
The annual check
- Year and purpose stated on each transfer.
- Total of creditable advance payments and withholding tax.
- Amounts shown in the final statement.
- Correspondence with the tax office on the amount set and with the collection office on the allocation.
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
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.