Good news: not everyone in Luxembourg is required to file a tax return. As an employee, you are mainly required to do so if:

Your taxable income exceeds €100,000 per year
You receive several types of remuneration subject to withholding tax (from two employers, for example), and the total exceeds €36,000 in tax class 1 or 2, or €30,000 in tax class 1a
You receive more than €600 per year of income that was not subject to withholding tax

For most people starting out with a single employer, none of these conditions applies, so you are not required to file a return. However, even when you are not required to do so, it is often in your interest to regularise your situation. You have two options:

Annual tax assessment (form 163)

This is a straightforward adjustment of the tax withheld from your salary, available to people who are not required to file a tax return. It is especially useful if you did not work for the full year, which is common when starting your first job or finishing your studies. Reassuringly, an annual tax assessment can, in principle, only work in your favour. It lets you recover any overpaid tax and never results in additional tax being due.

Tax return (form 100)

You must file one if you are required to submit a tax return, for example because you exceed the thresholds mentioned above or receive income that was not subject to withholding tax, such as rental income. You can also file voluntarily: it gives you access to all deductions, including some that are not covered by the annual tax assessment, such as interest on a home loan.

For example, Lea gets her first job and starts working in September, with a gross monthly salary of €4,000. From September to December, tax is withheld each month as if she were earning that salary throughout the year: nearly €2,000 is withheld in total. However, Lea only worked for four months during the year. Her annual income remains low and the tax actually due is close to zero. By filing an annual tax assessment, she can therefore recover almost all of that amount. The amount depends on your salary and the number of months you worked, and the ACD determines the final outcome.

First job in Luxembourg: everything you need to know about taxes

1. How tax works on your first salary

2. Understanding your tax class and tax card

3. Do you need to file a tax return in your first year?

4. Expenses you can deduct from the start

5. Reduce your taxes while preparing for your future

6. Key deadlines and steps to remember

Conclusion

File your return on taxx.lu