How to understand and manage the advance tax assessment notice ?

The advance tax assessment notice is a notification sent by the Luxembourg Inland Revenue (Administration des contributions directes – ACD). It outlines the advance payments you are required to make to cover your income tax for the current year.

These advance payments are calculated based on your most recent tax return or on estimates provided by the ACD. They allow you to pay your taxes in advance and in instalments throughout the year.

Here is what the different categories mean :

What should I do if my financial situation changes?

If your income decreases, if you have additional deductible expenses, or if your personal situation changes (for example, a birth or a change of job), you can ask for your advances to be adjusted.

Here's how to do it:

• Send a written, reasoned request to your tax office.
• Provide supporting documents (pay slips, tax statements, etc.).
• The ACD will reassess your situation and may adjust the amount of the advance.

Consequences of non-payment of advances

Non-payment or late payment of advances may result in :

• Interest on arrears of 0.6% per month on the amount outstanding.
• A risk of reminders or surcharges on your final tax bill.

To avoid this:

• Plan your payments taking into account the due dates.
• In the event of financial difficulties, contact the ACD as soon as possible to find a solution.

Updated on: 30/07/2025