Let the games begin: The 2022 tax forms are here!

From tailor-made multilingual briefings for your employees to the complete preparation of the income tax return, including individual assistance on concrete tax issues and simulation of the tax impact of decisions taken or to be taken, Grant Thornton is your contact for personalised tax advice!

We are at your side to help you and/or your employees to fulfill the tax obligations in the best possible way and to take the right decisions.

Do not hesitate to contact us to know our fees and the possibility to benefit from special fees for employers.

New rules 2023 at a glance

Legal deadline

Automatic extension of the legal deadline for the submission of the income tax return until 31 December of year N+1. For any submission after this date, the tax authorities may apply fines for late filing and refuse the refund of any tax credit.

Tax method

Possibility to change the method of taxation (individual or collective and/or global taxation for non-residents or revoke the choice made before) until 31 December of year N+1.

Children not belonging to the taxpayer's household

The deduction for children not belonging to the taxpayer's household increases to EUR 4,422 per child per year.

The costs to take into consideration are the ones actually incurred for children for whom you are not entitled to the tax reduction because they are not part of your tax household and for whom you mainly (>50%) bear the maintenance and education costs.

Modification of the impatriate tax regime

According to article 115 13b LIR, the new impatriate regime implemented on 1 January 2021, one of the conditions to benefit from the advantages of this status was to have a base salary of at least EUR 100,000 per year.

As from January 2023, this condition is changed and the threshold is of EUR 75,000 per year.                  

Profit-sharing bonuses (“primes participatives”)

Since 1 January 2021, employers have the possibility to allow their employees to benefit from profit-sharing bonuses (L.I.R. n° 115/12 of 8 March 2021).

The maximum allocation envelope was limited to 5% of the company's profit of the previous year.

As from January 2023, the allocation envelope is be extended to 5% of the previous year's profits of all companies of the same group.

In addition to the profit-sharing bonus, it is still possible to opt for the payment of interest subsidies to optimize the payment of your non-periodic (non-contractual) remunerations, or to offer to your employees a tax-efficient bonus pension plan.

Index

A new salary indexation has been triggered on 1 February 2023, bringing the new index to 898.93.

The new social minima to be considered are as follows:

Please note that the next indexation of salaries should occur on 1 April 2023.

Contact

Any question? Please contact our experts at the following email address: HRpayroll@lu.gt.com.