As we explained before, this is one of the direct progressive taxes levied on personal income, based on the income earned in a financial year. It is calculated in proportion to the change in the top part from € to €. In addition, the classification by social class is taken into account when applying one or another rate:
Category 1. Single or separated taxpayers algeria phone number library without children: the tax rate is progressive, starting at € for incomes below € (US$) and rising gradually to a maximum of € for incomes above € (US$). Depending on the level of income, an employment fund surcharge of € or € is also payable.
Category 2. Married couples filing jointly: the tax burden is distributed fairly, contributing to a lower overall tax burden. The tax rate is also progressive, but is specifically adjusted according to the joint income.
Category 3. Single or widowed parents with dependants: the tax rate is similar to that of category 4, but some additional deductions or lower tax rates apply to support the family situation of these taxpayers.
Value Added Tax
The Luxembourg VAT is an indirect tax that applies to most goods and services. It is called ( é , the French abbreviation) and is a tax that consumers pay when they buy products or services provided by companies. These bodies are responsible for collecting data through invoices and then transmitting them to the state. The rates adopted by the country are among the most competitive in the European Union:
Standard Most goods and services: electronics, clothing, furniture and general services. A TV worth € ( $) will be taxed € ( $) at the standard rate of .