Interested in showing solidarity and supporting a cause of general interest? Here is some useful information.

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Make a donation to a public-benefit organisation of your choice in Luxembourg and in 30 European countries...

... and deduct this donation - under certain conditions - from your taxable income in Luxembourg!

Luxembourg was one the first EU States to transpose the ruling of the European Court of Justice in the Hein Persche case into national 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 to national organisations.

Since the ruling was transposed into national law, the Luxembourg tax office is required to accept deductions concerning donations to public-benefit organisations in another EU Member State or a Member State of the European Free Trade Association.

Luxembourg donors and tax-payers may now 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.

Whom make a Luxembourg fiscally deductible donation to?

• To recognized public-benefit organisations (associations and foundations) and State-approuved non-governmental development organisations (ONGD) which can receive fiscally deductible donations in Luxembourg.
  
  Consult the list:
  www.impotsdirects.public.lu
  
  
• To organisations having their headquarter in another EU Member States (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Rumania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom) or in a Member State of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) and recognized of general interest according to the law of these States.
  
  Consult the deductibility criteria of donations:
  Circular L.I.R. N 112/2 of April 7th, 2010 (in French)
  

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Conditions of fiscal deductibility

In a bid to encourage charitable giving, the Luxembourg 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 authorized to perform its business in a Member State of the European Union or a Member State of the European Economic Area (Iceland, Liechtenstein and Norway), must first be authorized 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 authorization application period.

For more information:
Articles 109 and 112 L I R (in French)

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Modalities

• Luxembourg taxpayers 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 taxpayer’s residence.
• The tax reduction form may be downloaded at: Modèle 161 (in French).

For further information: www.impotsdirects.public.lu (in French)