Tax Insight Infographic Diagrams

A visual companion to the insight articles, designed for quick scanning, client sharing, and tax deduction comparisons.

Standalone Visuals Key Rules Summarized Mobile Friendly
Back to full articles
6 diagram-led visuals for the most important deduction rules
EUR 5,400 shared annual forfait cap highlighted in the visual system
2025 Luxembourg-focused tax filing reference with mobile-friendly layouts
Workflow

1. Does an Expense Qualify as an Extraordinary Charge?

Article 127 LIR requires all four tests to be satisfied.

Expense paid by taxpayer
↓
Extraordinary for comparable taxpayers?
Unavoidable for legal, material, or moral reasons?
Significantly reduces ability to pay?
Explicitly claimed on the return?
↓
All yes: continue to threshold or forfait method
Any no: not deductible as an extraordinary charge
Comparison

2. Forfait vs. Actual Costs

The faster method is not always the better deduction.

Forfait

  • Up to EUR 5,400/year
  • No threshold to exceed
  • Only childcare, domestic help, dependency care
  • Never more than what you actually paid
Best when costs are moderate or income is high
vs

Actual Costs

  • No fixed cap
  • Threshold depends on income and children
  • Covers broader extraordinary charges
  • Only excess above the normal burden is deductible
Best when total qualifying costs are far above EUR 5,400
Trap

3. The Shared EUR 5,400 Cap

The allowance is shared across three categories, not repeated per category.

EUR 5,400 yearly cap One allowance for the whole household claim
A

Childcare

Creche, maison relais, approved childminder

B

Domestic Help

Indoor household tasks with proper affiliation

C

Dependency Care

Assistance and care costs covered by the same forfait

Not 3 x EUR 5,400. Combined costs still feed one cap.
Formula

4. Childcare Deduction With CSA

Only the net out-of-pocket amount is deductible.

Annual invoice EUR 7,200
−
CSA subsidy EUR 3,600
=
Deductible cost EUR 3,600
Matrix

5. Mortgage Interest Cap Timeline

The property availability date drives the deduction cap.

Before 01/01/2015
EUR 2,000 per person
01/01/2015 to 31/12/2019
EUR 3,000 per person
01/01/2020 to 31/12/2023
EUR 4,000 per person
After 31/12/2023
No cap
Checklist

6. Fast Claim Checklist

A simple filing order for taxpayers preparing their return.

1 Gather invoices, annual certificates, and proof of payment
2 Separate forfait-eligible costs from broader extraordinary charges
3 Calculate both methods when costs exceed EUR 5,400
4 Deduct only net costs after reimbursements or subsidies
5 Keep documents ready for ACD review