On Friday 10 November 2017, the British Chamber of Commerce, together with the American Chamber of Commerce (AMCHAM) and AIESBO, held a Personal Tax Lunch at La Table du Belvedere in Luxembourg-Kirchberg.

Joanna Denton, Chairman of the British Chamber of Commerce in Luxembourg, welcomed those attending, and Paul Schonenberg, Chairman of AMCHAM, both remarked on holding the same event together for the first time. Joanna Denton also thanked the sponsors and reminded attendees on upcoming events.

The event was organised to provide an update on important Luxembourg Personal Tax aspects that happened recently, plus upcoming changes in Luxembourg Personal Taxation for 2018, as well as to provide a briefing on important items to ensure individuals can best optimise their tax situation before the end of the year.

Guest Speakers were Laura Foulds of Analie Tax & Consulting and Aude-Marie Breden, Personal Tax Senior Manager at Mazars.

Laura Foulds stated that everyone would be affected by the 2017 tax reform.

Aude-Marie Breden talked about the 2017 tax reform, with €300 tax credits disappearing but new tax rates coming into effect. Benefit-in-kind taxes for environmental issues have increased. Tax deductions have changed, including regarding interest relief.

For the self-employed, they now have to keep formal accounts, and independent directors now are obliged to charge VAT (at 17%), which means they have to register first with the VAT authorities.

Laura Foulds then talked about changed that would come into effect from 1 January 2018, with married couples having the option to be taxed jointly or separately, or by a hybrid option, with an advance notice required by 31 March 2018, for 2018. If you do not advise the tax authorities of a change, the current arrangement will prevail.

Also, for married couples who are non-resident, they will be treated by default as tax class 1, unless you advise the tax authorities in advance. For two earners in a household, they will be worse off, tax-wise. From 2018, non-residents will be obliged to file a tax return annuanlly. She also advised that other issues and exemptions will apply to non-residents if more than 10% of their income comes from work outside Luxembourg.

Laura Foulds added that, regarding Brexit, they are unlikely to be any changes until the UK leaves the EU. To conclude, she urged attendees to (1) complete your 2017 tax return if not already done so, and optimise your tax deductions regarding 2018 before the end of 2017.