{"id":862,"date":"2024-04-18T13:16:34","date_gmt":"2024-04-18T13:16:34","guid":{"rendered":"https:\/\/www.gsl.lu\/?p=862"},"modified":"2024-04-18T14:03:56","modified_gmt":"2024-04-18T14:03:56","slug":"rtl-steierdag-tax-day","status":"publish","type":"post","link":"https:\/\/www.gsl.lu\/en\/rtl-steierdag-tax-day\/","title":{"rendered":"RTL Steierdag – Tax Day"},"content":{"rendered":"

The Tax Day, organized by RTL in partnership with Ernster at Belle-\u00c9toile, has become an essential event for many Luxembourg taxpayers seeking clarity in the often complex world of tax filings. This initiative brought together several experts from various trust firms across Luxembourg and enabled attendees to receive clear and precise answers to their questions. We are particularly pleased to have been able to share our expertise to enlighten citizens about their tax queries. The event highlighted how crucial access to relevant tax information is and how it can simplify the lives of taxpayers.<\/p>\n

Were you unable to attend? Or did you miss the radio broadcast? No worries, we have noted all the caller questions for you!<\/p>\n

\"RTLWho needs to file a tax return?<\/h3>\n

Question:<\/strong> (\u2026). I haven’t filed a tax return for 3 years because I absolutely have nothing to declare. I was once told that there’s no need to file one if you have nothing to declare. I wanted to ask if this is true?<\/em><\/p>\n

Nicole Fletscher (Grant Thornton)<\/strong>: That’s not entirely correct; it depends on your income. If you are single, with income and a tax card, you only need to file a tax return if your taxable income exceeds 100,000 euros. In a household with two tax cards on salaries or pensions, you need to file an income tax return starting from 36,000 euros. If you are a non-resident with a global tax rate, you are always required to file a tax return. If you have incomes over 600 euros that are not subject to withholding tax, you must always file a tax return. And if you have capital incomes of 1,500 euros or more, you also need to file a tax return. So, it really depends on the incomes you generate.<\/em><\/p>\n

Can you deduct rent and buying a car?<\/h3>\n

Question:<\/strong> So, I just wanted to know in detail how it works if one wants to deduct their rent, the rent itself, and also the charges that the tenant pays?<\/em><\/p>\n

Guy Schroeder (GSL):<\/strong> Rent and charges as a tenant cannot be deducted. Of course, there are different rules if you are a homeowner; there, the rental income is taxed, and various costs can be deducted. But as a tenant, you cannot deduct the costs of charges and rent.<\/em><\/p>\n

Question:<\/strong> I wanted to ask if one can deduct a car if it is bought new?<\/em><\/p>\n

RTL:<\/strong> Sven Hoffmann from Fiduciaire HP Group, how does it work?<\/em><\/p>\n

Sven Hoffman (HPG):<\/strong> Unfortunately, that cannot be deducted. The only thing that could be deducted is if the car is financed by a bank or a lease; then, one can deduct the interest and of course the car’s liability insurance. The ceiling for interest and insurance is 672 euros per person in the household.<\/em><\/p>\n

\"RTLShould taxes be filed as a couple or individually?<\/h3>\n

Question:<\/strong> I wanted to know if it is more beneficial to file tax returns separately or together? We are always taxed together, but I have heard that it might be cheaper for each if we are taxed separately.<\/em><\/p>\n

Nicole Fletscher (Grant Thornton):<\/strong> It depends on the situation. Generally, for married residents, joint taxation is normally the most advantageous option. Of course, it always depends on each’s income and deductible expenses.<\/em><\/p>\n

RTL:<\/strong> For example?<\/em><\/p>\n

Nicole Fletscher (Grant Thornton):<\/strong> It depends on extraordinary expenses. If you have higher extraordinary expenses and lower incomes, you might potentially deduct more by filing individually. But then you would also be in tax class 1 instead of tax class 2. So it is really always a calculation exercise.<\/em><\/p>\n

We hope you have already found some useful answers from what we have shared so far.<\/p>\n

Do you have a specific question regarding your tax return? Do not hesitate to contact us. We are here to help.<\/p>\n<\/div>\n

\n

<\/p>

    <\/ul><\/div>\n
    \n
    \n\n\n\n\n\n\n\n<\/div>\n