Interested in showing solidarity with the less fortunate members of our society?
Here is some useful information.

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Good news for Luxembourg !

On 20 July 2009, the Luxembourg tax authorities announced that donations paid to registered public-benefit organisations whose head office is located in another EU Member State would be tax deductible in accordance with the laws of that country.

This announcement makes Luxembourg one of the first EU States to transpose the ruling of the European Court of Justice in the Hein Persche case into local law. The Court concluded that public-benefit organisations based in other EU Member States shall no longer be automatically excluded from tax regimes offering favourable tax treatment of charitable donations.
Since the ruling was transposed into local law, the tax office will be required in principle to accept deductions concerning donations to public-benefit organisations in another EU Member State or a Member State of the European Free Trade Association.
This is excellent news for Luxembourg donors. From now on, they may donate to registered public-benefit organisations located in 30 European countries and benefit from the same tax treatment applied to donations made to Luxembourg-based public-benefit organisations.

For more information:
- Consult the decree issued by the "Directeur des Contributions" (Luxembourg Tax Office), 20 July 2009 (in French)
- Consult the Court of Justice Ruling No. C-318/07, 27 January 2009, in the Hein Persche v Finanzamt Lüdenschied case

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What type of donation?

You can support charities, associations and foundations by:

• Volunteering
  • www.benevolat.lu
  • www.teamkaart.lu (14-26 years old)
• Making gifts in kind
• Cash donations

 

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Tax-efficient giving

Cash donations made to the organisations listed below (as well as gifts in kind to the Fonds culturel national) are eligible for tax relief.

Who can I donate to?

Click the following link to see the list of State-approved organisations.

• Detailed list (last updated: May 2010) (in French)
• Official Government list (in French)

 

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Tax relief

In a bid to encourage charitable giving, the government has agreed greater tax relief for charitable donations since the start of 2009.
You can deduct donations from your tax bill under special expenses (in French) according to certain conditions:

• Minimum (annual donation): €120
• Maximum (annual donation): cannot exceed
  • 20% of total net income
  • €1,000,000
• You may spread your donation over three consecutive years (see conditions below) in the case where the annual limit is exceeded.
• Non-resident taxpayers who are considered like resident taxpayers can apply to have donations deducted as part of their overall assessment.
• Donations exceeding €30,000, that are not from a bank authorised to perform its business in the European Union, must first be authorised by a decree from the Luxembourg Ministry of Justice, following an application sent by the beneficiary organisations to the Ministry of Justice. Donations can be accepted provisionally during the authorisation application period.

For more information:

• Unofficial summary of direct taxes levied
• Articles 109 and 112 L I R (in French)

 

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Terms and conditions

• Employees resident in Luxembourg can only deduct gifts and charitable donations at the end of the tax year.
• Applications, along with receipts, should be sent to the tax office (in French) of the employee's residence.
• The tax reduction form may be downloaded at: Modèle 161.

For further information, click: http://www.impotsdirects.public.lu/ (in French)