Taxation of international executives
Individuals domiciled in Luxembourg are subject to income tax on their worldwide income unless exempt under the provisions of a treaty. Domicile does not refer to the Anglo-Saxon term, but is a term used in Luxembourg tax law essentially equivalent to the term residence in most jurisdictions.
Non-residents (non-domiciliary) are subject to tax on certain categories of income from Luxembourg sources.
The official currency of Luxembourg is the Euro (EUR).
Herein, the host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.
A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.
All information contained in this publication is summarized by KPMG Luxembourg, Société coopérative, the Luxembourg member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Luxembourg Income Tax Law of 4 December 1967 and subsequent amendments; Luxembourg law of 29 August 2008; Grand- Duchy regulation of 5 September 2008; the Luxembourg web site of Ministry of Foreign and European affairs, the Luxembourg website Guichet.lu and Ministère des Finances.
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