Personal taxation · Luxembourg
Investment income: declaring interest and dividends
A portfolio statement may contain dividends, interest, distributions, disposals and fees that follow different rules. Your file must distinguish these transactions, the withholding tax and any final withholding regimes. The gain shown by your broker is not a single tax amount to carry over.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
A portfolio matrix
| Transaction | Information needed | Tax question |
|---|---|---|
| Dividend | Payer, gross amount, withholding tax and date | Possible exemption and credit |
| Interest | Product, payer and withholding tax | Ordinary or final withholding regime |
| Disposal | Price, cost, fees and dates | Capital gain, category and conditions |
| Fund distribution | Structure and nature of the product | Classification specific to the fund |
| Fees | Nature and link with the income | Deduction and applicable limits |
Reconcile the gross data
Keep the breakdown of income and withholding tax by country, not just the net amount credited to the account. Currencies and conversions must be documented. A foreign withholding tax may be capped or treated differently depending on the tax treaty.
The allowances and expenses specific to investment income are not the same as those for salary or rental income. Losses do not necessarily have the same offsetting possibilities.
Fictitious example
The annual statement includes a net dividend and a sale of securities. Adding these two flows together as ordinary investment income mixes up a distribution and a disposal. The sale must be matched against its cost and dates before the result is classified.
An exemption applicable to a distribution does not automatically extend to all the funds, interest or capital gains in the portfolio.
Preparing the engagement
Export the annual tax statement and the necessary history of purchases, sales and fees. If securities have been transferred between brokers, check the continuity of the acquisition cost.
Crypto-assets and activities of a professional nature must be examined according to their own classification; they should not be absorbed into a portfolio total without analysis.
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.