24. Glossary

Declaration & Procedures

1. Luxembourg Tax Return
   Official form to declare your income to the ACD for tax calculation.

2. Administration des Contributions Directes (ACD)
   The Luxembourg tax authority responsible for collecting taxes and reviewing returns.

3. Form 100
   Standard form to declare your income as an individual.

4. Filing Luxembourg Tax Return
   Action of submitting your tax return to the ACD, either online via MyGuichet or on paper.

5. LuxTrust / eID Account
   Secure identification required to sign and validate your online return.

6. Corrective Tax Return
   Return that modifies a previous declaration to correct errors or omissions.

7. Tax Adjustment
   Process of correcting or adjusting a return after review.

8. Provisional Tax Notice
   Preliminary estimate of tax before the final calculation.

9. Final Tax Notice
   Final document specifying the exact amount of tax due.

Income & Taxation

1. Income Tax
   Amount paid on all your taxable income in Luxembourg.

2. Taxable Income
   Income subject to tax, such as salaries, rent, or dividends.

3. Exempt Income
   Income not subject to tax, for example certain EU civil servant salaries.

4. Worldwide Income
   Total income received from all over the world.

5. Investment Income
   Financial income: dividends, bank interest, or capital gains on shares.

6. Rental Income
   Rent received from a property, taxable in Luxembourg.

7. Real Estate Capital Gain
   Profit realized on the sale of real estate.

8. Capital Gains on Shares
   Profit realized from selling shares or financial securities.

9. Net Taxable Income
   Income after allowable deductions and tax reductions.

Deductions & Advanced Charges

1. Flat-Rate Deduction
   Fixed amount automatically deducted without supporting documents.

2. Depreciable Base
   Value of the asset on which depreciation is calculated.

3. Tax Deductions
   Amounts that reduce taxable income.

4. Special Expenses
   Category of deductible expenses such as insurance, pensions, or donations.

Tax Scale, Rates & Credits

1. Tax Scale
   Income brackets and rates applied to calculate tax.

2. Progressive Tax
   System where the tax rate increases with income.

3. Outstanding Tax Balance
   Amount remaining to be paid after deductions and withholdings.

4. Tax Refund
   Amount reimbursed if too much tax has been paid.

5. International Tax Treaty
   Agreement between two countries defining who pays tax on certain income.

6. Marginal Tax Rate
   Rate applied to the last income bracket, usually the highest.

Family & Residence Situation

1. Luxembourg Tax Residence
   Country where you are liable for tax on all worldwide income.

2. Joint Taxation
   Couple filing on a single return to calculate tax.

Tax Documents

1. Salary Certificate
   Official statement of income and taxes withheld by the employer.

2. Bank Statements
   Proof of income, interest, or dividend payments.

3. Mortgage Interest Certificate
   Document certifying mortgage interest paid, deductible in certain cases.

4. Rental Income Statements
   Proof of rent received and related expenses.

5. Other Deduction Certificates
   Documents related to insurance, pensions, or donations.

Dates & Obligations

1. Tax Year
   Period covered by the return.

2. Filing Deadline
   Last day to submit the return (December 31).

3. Late Payment Interest
   Penalty applied for late filing.

4. Automatic Assessment
   Automatic calculation of tax if no return is filed.