Glossary
Updated on 06/09/2024

Lump Sum Allowance for Special Expenses (FDS)

What is the FDS? – The lump sum allowance for special expenses (FDS) consists of:

arrears of annuities and permanent charges due under a specific obligation
annuities paid in connection with a divorce;
interest expenses related to consumer loans, car loans, personal property loans, etc
insurance contributions and premiums:
  • contributions paid in a personal capacity as a result of insurance with a Luxembourg social security scheme or a recognized foreign statutory scheme
  • contributions paid on a personal basis for supplementary pension insurance (LRCP) in accordance with the law of June 8, 1999
  • contributions and insurance premiums paid to private companies and contributions paid to mutual aid societies
  • contributions paid to building societies
  • expenses incurred for provident purposes
grants and donations
carry-forward of losses

Who is eligible for the FDS? – Any employee working in Luxembourg.

How much is the FDS? – The lump sum allowance for special expenses  amounts to €480 per year.

How to receive FDS? – The lump sum allowance for special expenses is automatically applied in the tax scale.

When does the FDS expire? - The lump sum allowance for special expenses does not expire.
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