How are received dividends taxed?

Question

Accepted Answer

Dividends are 50% exempt if they are distributed by a fully taxable capital stock company (such as an SA, SARL, etc.) that are located :

in Luxembourg or ;
in another EU Member State or ;
in a country having entered into a double taxation avoidance agreement with Luxembourg.

You must also complete model 180 when you receive dividends distributed by Luxembourg or foreign companies located in a country with which Luxembourg has concluded a double tax agreement.

You benefit from an exempt tranche of EUR 1,500 per year applying to all income from movable capital (interest and taxable dividends) received during the year.

Example :

Dividends received in Luxembourg:

Fill in form 180
Indicate on taxx.lu the sum of column 7 for dividends received from Luxembourg companies in field "Proceeds from capital shares, profit shares or other interests from collective organizations and other products (gross amount - 50% exemption)".

Dividends received in the European Union or in a country which has concluded a convention with Luxembourg for the avoidance of double taxation:

Fill in form 180
Indicate on taxx.lu the sum of column 7 for dividends in field "a) Products of securities from States with which the Grand Duchy has concluded conventions against double taxation (gross amount - 50% exemption)".

Dividends received in a country with which Luxembourg has not concluded a convention for the avoidance of double taxation:

Indicate on taxx.lu the sum of the dividends received in field " b) Products of securities from States not referred to in a) above (gross amount)".