It's the final article in our series about important tax tips to think about before 2016 is over. (Missed the first three? Here are Part 1, Part 2, and Part 3).

This week features information about tax credits and filing deadlines. Read more below, and check our Twitter feed for more tax tips!

Give yourself credit

Tax credits will be modified in 2017 as follows:

  • For a gross annual salary / pension / self-employed income between €936 and €11,265, a tax credit of €300 per year (with a potential progressive increase to €600) might be available.
  • For a gross annual salary / pension / self-employed income between €11,266 and €40,000, a tax credit of €600 is available.
  • For a gross annual income between €40,001 and €79,999, a tax credit from €600 (progressively decreasing to €0 as your salary increases) is available.

Questions? Contact us here.

Singles in your area

Good news for single parents: as of fiscal year 2017, the single-parent tax credit (CIM) will be doubled. Currently it's €750 per year, but it will be raised to €1,500 per year (provided that your annual taxable income is less than €35,000). If your taxable income is over €35,000, then this credit will progressively decrease in accordance with how large your taxable income is, up to €105,000, at which point the credit is all the way back to €750.

The CIM may be decreased by 50% in cases where monthly maintenance payments to support children are above €184 per month (€2,208 per year) in 2016, or above €160 per month (€1,920 per year) in 2017. Family allowances and orphan pensions are exceptions to this rule!

File with a smile

Santa clause is coming! Will he file your 2015 taxes?

Nope.

It's up to you now: these are the last days to submit your 2015 personal tax return to the Luxembourg tax authorities—the deadline is 31 December 2016 so please make sure that your tax return is in the hands of the Luxembourg tax authorities by Friday, 30 December 2016, at the latest.

In addition, please be careful as from 1 January 2017 the Luxembourg tax authorities may assess increased penalties for late filing.

Rock your docs

Luxembourg tax authorities love complete tax files! But what does "complete" entail? It is advisable to prove all the amounts that you report on your tax form with supporting documents (i.e. certificates of salary, bank account statements, insurance certificates, invoices, etc.) As of today, you can start to prepare the "perfect file" for 2017 since you should receive all your year-end statements and certificates in the early weeks of 2017. The authorities will appreciate this early start and your file may be treated more smoothly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.