Married Cross-Border Workers: Who can claim a fixed tax rate? What are the pros and cons?💼🏡
Are you a non-resident cross-border commuter working in Luxembourg? Find out how you can benefit from a favourable tax rate that corresponds to tax class principle 2! 🏰💶
Who can benefit from the fixed tax rate?
✔️ All married non-resident couples who meet the necessary conditions.
✔️ Registered civil partnerships are subject to tax class principle 2, which is taken into account in the tax return.
How do you get a fixed tax rate?
📝 Simply make an application using form 166.
How is the tax rate determined?
🧮 Attach the last 3 payslips of both spouses to the Form 166. The tax office calculates the tax rate based on your income and deductions in order to take your individual situation into account as best as possible.
When is the fixed tax rate advantageous?
👍 The tax rate is advantageous if the salary differential between the spouses is large. If the income from Luxembourg is higher than that from abroad, the fixed tax rate can reduce your tax burden.
What are the disadvantages?
⚠️ If you opt for the fixed tax rate, you will have to file a tax return in Luxembourg every year. Your tax rate may increase or decrease depending on your income from the previous year. To avoid surprises, apply for an adjustment as soon as your income changes significantly.
Do you have questions about your tax situation? Contact us: firstname.lastname@example.org 📧💼
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