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Bill on Article 111BIS LIR

As of 1st January 2017, the Luxembourg Government intends to make use of the opportunities that the bill on tax reform offers in order to simplify the insurance products "Savings – Retirement Provision" and ease the eventual release of accumulated savings.

Tableau synthétisant les modifications :

Before 01/01/2017 After 01/01/2017 (*)

Table summarising the changes:

Different upper limit of deduction depending on taxpayer's age

Up to 40 years:  

 1 500 EUR/year

 

From 40 to 44 years:    

1 750 EUR/year

 

From 45 to 49 years:

2 100 EUR/year

 

From 50 to 54 years:

 2 600 EUR/year

 

From the age of 55:

  3 200 EUR/year

 

 

 

 

Same upper limit of deduction for anyone, no matter how old the taxpayer is    

3 200 EUR / an

Benefits at the end of the contract:

  • 100% in the form of a life annuity

or

  • Minimum 50% in the form of a life annuity and the rest in the form of a lump sum

Benefits at the end of the contract:

  • 100% in the form of a lump sum

or

  • 100% in the form of a life annuity

or

  • Mix of both, without any restrictions

(*)   Subject to approval by the Parliament of bill No. 7020 (which is on the agenda on 11/11/2016) on tax reform (without any amendments)..