Why is it necessary to declare foreign income in the Luxemburgish tax return?
You are required to report all of your income, both Luxembourg-source and foreign-source, on your Luxembourg tax return.
Even if foreign income is not taxable in the Grand Duchy of Luxembourg, it is included in a national tax base to determine the overall tax rate applicable to adjusted taxable income in Luxembourg.
The Luxembourg tax authorities are in contact with foreign tax authorities and may be aware of undeclared foreign income.
This could result in a tax adjustment over one or more years.
Here is an example of a letter you could receive:
Even if foreign income is not taxable in the Grand Duchy of Luxembourg, it is included in a national tax base to determine the overall tax rate applicable to adjusted taxable income in Luxembourg.
The Luxembourg tax authorities are in contact with foreign tax authorities and may be aware of undeclared foreign income.
This could result in a tax adjustment over one or more years.
Here is an example of a letter you could receive:
Updated on: 24/07/2024
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