Personal taxation · Luxembourg
Supplementary pension scheme and private pension plans
An occupational supplementary pension scheme and an individual private pension plan contract are two separate arrangements. You need to identify who contributes, under which framework and for which year. Benefits paid out require an analysis separate from that of the contributions.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
A distinction between schemes
| Arrangement | Origin | Tax question |
|---|---|---|
| Statutory compulsory pension | Social security affiliation | Contributions and pension under their own rules |
| Occupational supplementary scheme | Plan set up within the permitted framework | Employer/personal contributions and benefits |
| Individual private pension plan | Private contract under Article 111bis or the scheme concerned | Eligibility, ceiling and payout |
| Foreign contract | Classification to be established | Do not deduct on the basis of the product name alone |
Personal contributions and limits
For the employee supplementary scheme covered by Article 110, the personal reference ceiling indicated by the Luxembourg Inland Revenue (ACD) is EUR 1,200 per year. It must not be confused with the individual private pension plan ceiling of EUR 3,200 for 2025.
Employer funding does not become an additional personal contribution that you can claim. Contributions by a self-employed person under the applicable framework are subject to their own conditions and limits.
Fictitious example
An employee has an employer plan and an individual contract. You need to identify their personal contribution to the plan, what already appears on the certificates and the private pension plan payments, then apply the rules of each scheme.
The future taxation of the benefit cannot simply be inferred from the deductibility of the contribution. Residence, the nature of the payout and the tax treaty may need to be examined.
Documents to request
- Rules or certificate of the occupational scheme.
- Employer/employee breakdown and annual certificate.
- Individual contract and separate certificate.
- Payout documents and tax residence if a benefit is paid.
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Official sources and scope
- ACD: insurance contributions and premiums
- ACD: private pension plans, 2025 and 2026 ceilings
- ACD: tax treaties in force
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.