Luxembourg Tax: Donation Tax Deduction Regulation Changed in Luxembourg

The European Court of Justice announced that a tax law of a member state discriminating donations made to organizations in other European Union member states is against the free movement of capital.

The tax law in Luxembourg allows only organizations in Luxembourg can get a tax deduction for donations, and donations made to nonprofit organizations outside Luxembourg are not allowed.

The Luxembourg tax law has changed so it allows donations that are made to organizations based in other member states of the European Union / European Economic Area.

To be eligible for the tax deduction, the total yearly amount of donation has to be no more than 120 million Euros, or 20% of the annual income.

Read more about Luxembourg Tax.