Dear Patsy,
"For taxation purposes, an individual is either resident or
non-resident, and nationality is not a factor in determining tax
status. An individual is considered resident in Luxembourg if he
maintains a residence there with the intention of remaining on other
than a temporary basis. A stay of more than 6 months amounts to
residence. In legal terms, an individual is resident if either his tax
domicile (domicile fiscale or Wohnsitz) or his usual abode (lieu de
sejour habituel or gewohnlicher Aufenhalt) is in Luxembourg." (Source:
Luxembourg Personal Taxation,
http://www.lowtax.net/lowtax/html/jlxpetx.html).
This includes, among other sources of income, taxation on some sorts
of pensions (ibid). Pensions paid under Luxembourg social security
will be taxable in the Grand-Duchy. (See: Sami Douénias and Anabela
Lourenço Marques, "Luxembourg/Portugal, A tax treaty soon in force ?"
Luxembourg Business, September 2000,
http://www.pwcglobal.com/lu/eng/about/press-rm/luxembourgbusinesssept2000.html
and also MISSOC http://europa.eu.int/comm/employment_social/missoc/2002/index_lx_en.htm
; Alan Steichen, "Taxation of Cross Border Pension Provision -
Luxembourg" http://www.eatlp.org/lisbon/LuxembourgReport.PDF ). This
includes all types of pensions, whether paid by the Grand Duchy, or
from other sources (i.e., EU).
However, to every rule there's an exception. EU officials, including
MEPs, are taxed in a "community tax" that is deducted from their
salaries. Former MEPs pensions are subjected to tax "payable to the
European Communities". (European Union, RECOMMENDATION OF THE GROUP OF
EMINENT PERSONS ON THE STATUTE FOR MEMBERS"
www.europarl.eu.int/meetdocs/committees/ juri/20000619/414080_en.doc)
(See also : http://www.europarl.eu.int/meetdocs/committees/juri/20011113/449155en.pdf
). This is highly contested issue, with many MEPs opposing the
community taxation (instead of a national taxation) on their pensions.
I hope that answered your question. I searched the Internet and
especially legal documents for keywords such as <"community tax"
income eu>, <"community tax" "pension OR pensions" tax>, <"mep
pensions" taxation> (see interesting discussions in the search results
- http://www.parliament.the-stationery-office.co.uk/pa/cm199900/cmhansrd/vo000524/text/00524w11.htm#00524w11.html_sbhd4),
<"mep salaries" taxation>, <"community tax" Luxembourg pensions> and
of course <"mep" "pension OR pensions" taxed>, <"former mep" "pension
OR pensions" taxation>, and <Luxembourg "former mep" "pension OR
pensions">. Please contact me if you need any further clarification.
I'd be pleased to clarify my answer before you rate it. |
