Posted on 05 January 2025
Understanding the tax advance fixing document in Luxembourg
Find out how to understand and manage the tax advance fixing document in Luxembourg. Key dates, adjustments and practical advice on how to stay compliant and avoid penalties.
In Luxembourg, tax advances enable taxpayers to pay their income tax in advance and spread over the year. However, for many people, the document setting out the advances may seem complex. In this article, we'll take you step by step through the document and answer any questions you may have.
What is the advance fixing document?
The advance fixing document is a notification sent by the Tax Authorities. It details the advance payments you must make to cover your income tax for the current year. These advance payments are calculated on the basis of your latest tax assessment or on estimates provided by the Tax Department.
What should I do if my financial situation changes?
If your income falls, 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:
Here's how to do it:
- Send a written, reasoned request to your tax office.
- Provide supporting documents (pay slips, statements of contributions, etc.).
- The Tax Authorities will reassess your situation and may adjust the amount of the advances.
Consequences of non-payment of advances
Non-payment or late payment of advances may result in :
Non-payment or late payment of advances may result in :
- Late payment interest 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.
- If you run into financial difficulties, contact the ACD as soon as possible to find a solution.
