Updated on
30/12/2023
Employee Tax Credit (CIS)
What is the CIS? — The employee tax credit, or CIS, is a tax allowance designed to provide financial support to individuals with a salary in Luxembourg. Its purpose is to reduce the tax burden of the beneficiaries.
How did the CIS work between 2009 and 2016? — During this period, recipients of a salary in Luxembourg were granted a fixed annual credit of 300 €. This amount was paid by the employer during the tax year, after certain income thresholds had been exceeded.
What has changed from 2017 to 2020? — The tax credit became more flexible, ranging from 300 € to 600 € per year, depending on the annual income. Beneficiaries with an annual income of more than 80.000 € were not eligible for this credit.
What's new from 2021? — The calculation has been revised and now ranges from 396 € to 696 €, depending on the annual income. Beneficiaries with an income below a certain threshold may not be eligible for the credit.
What happens in 2024? — The first tier is set at 300 € and the second and third tiers are set at 600 €. Some calculation details have been adjusted for easier understanding.
How do I know if I am eligible for the CIS in 2024? — You are eligible if your gross salary is at least 936 € per year. Please refer to the salary ranges in the previous answers for more details.
How is the CIS amount calculated in 2024? — The amount depends on your gross salary. Please refer to the salary ranges in the previous answers for more details.
Is the CIS paid monthly? — Yes, the CIS amount is included in your monthly payslip along with other tax withholdings.
Is the CIS granted automatically or do I have to request it? — CIS is generally granted to you automatically if you meet the requirements. The payment is processed by your employer.
How did the CIS work between 2009 and 2016? — During this period, recipients of a salary in Luxembourg were granted a fixed annual credit of 300 €. This amount was paid by the employer during the tax year, after certain income thresholds had been exceeded.
What has changed from 2017 to 2020? — The tax credit became more flexible, ranging from 300 € to 600 € per year, depending on the annual income. Beneficiaries with an annual income of more than 80.000 € were not eligible for this credit.
What's new from 2021? — The calculation has been revised and now ranges from 396 € to 696 €, depending on the annual income. Beneficiaries with an income below a certain threshold may not be eligible for the credit.
What happens in 2024? — The first tier is set at 300 € and the second and third tiers are set at 600 €. Some calculation details have been adjusted for easier understanding.
How do I know if I am eligible for the CIS in 2024? — You are eligible if your gross salary is at least 936 € per year. Please refer to the salary ranges in the previous answers for more details.
How is the CIS amount calculated in 2024? — The amount depends on your gross salary. Please refer to the salary ranges in the previous answers for more details.
Is the CIS paid monthly? — Yes, the CIS amount is included in your monthly payslip along with other tax withholdings.
Is the CIS granted automatically or do I have to request it? — CIS is generally granted to you automatically if you meet the requirements. The payment is processed by your employer.