Conjoncture Tax Credit (CIC) in Luxembourg

Following the tripartite agreement of March 3, 2023, the Luxembourg government has decided to introduce the Eonomic or Conjoncture Tax Credit (CIC) (Bill n°8195) from July 2023, with retroactive effect to January 1, 2023. This tax measure aims to offset the rising cost of living by providing financial support to citizens, equivalent to two index levels (5%), until the end of 2023, with retroactive application from the start of the year.

The CIC will be granted to all taxpayers with income from a salaried occupation, provided that their gross monthly salary is at least 1.125 €. The monthly amount paid, up to a maximum of 54,25 €, will be calculated on the basis of each individual's monthly salary and will be incorporated directly into the payslip, in the same way as the CIS and CISSM. As a result, the July payslip will include the CIC amount for July, as well as retroactive amounts for January to June.

Below is the evolution of the monthly CIC amount based on the monthly salary:

Monthly salary: 1.125 €
Expected CIC: 0 €

Monthly salary: 1.126 €
CIC forecast: 0,04 €

Monthly salary: 1.249 €
CIC forecast: 3,97 €

Monthly salary: 1.250 €
Expected CIC: 4 €

Monthly salary: 1251 €
Expected CIC: 4,01 €

Monthly salary: 2.099 €
Expected CIC: 7 €

Monthly salary: 2.100 €
Expected CIC: 7 €

Monthly salary: 2.101 €
CIC forecast: 7,02 €

Monthly salary: 2.508,24 €
CIC forecast: 13,04 €

Monthly salary: 3.009,88 €
Expected CIC: 20,47 €

Monthly salary: 3.250 €
Expected CIC: 24,02 €

Monthly salary: 3.500 €
Expected CIC: 27,72 €

Monthly salary: 3.750 €
Expected CIC: 31,42 €

Monthly salary: 4.000 €
Expected CIC: 35,12 €

Monthly salary: 4.250 €
Expected CIC: 38,82 €

Monthly salary: 4.500 €
Expected CIC: 42,52 €

Monthly salary: 4.599 €
Expected CIC: 43,99 €

Monthly salary: 4.600 €
Expected CIC: 44 €

Monthly salary: 9.500 €
Expected CIC: 44 €

Monthly salary: 9.501 €
Expected CIC: 44,01 €

Monthly salary: 9.924 €
Expected CIC: 48 €

Monthly salary: 9.925 €
Expected CIC: 48 €

Monthly salary: 10.000 €
Expected CIC: 48 €

Monthly salary: 14.174 €
Expected CIC: 48 €

Monthly salary: 14.176 €
Expected CIC: 48,01 €

Monthly salary: 14.915 €
Expected CIC: 54,24 €

Monthly salary: 14.916 €
Expected CIC: 54,25 €