Luxembourg

The following three tax credits are available:

• Employee tax credit varies between EUR 0 and EUR 696 depending on the level of income.
• Pensioner tax credit varies between EUR 0 and EUR 696 depending on the level of income.
• Single parent tax credit varies between EUR 750 and EUR 2,505 depending on the level of income.

Each of these credits may give rise to a tax refund even where the final taxes are lower than the credit itself.

The Budget Law for 2019 introduced the CISSM (Crédit d'impôt salaire social minimum), which applies to employees and apprentices when their salary is between EUR 1,500 and EUR 3,000. The amount of the CISSM varies according to the gross salary. Between EUR 1,500 and EUR 2,500, the amount of the CISSM is EUR 70.00. Between EUR 2,500 and EUR 3,000, the amount of the CISSM is degressive and is calculated as follows: 70/500 x (3,000 - gross monthly salary) EUR per month.