• Benefits in Kind

Benefits in Kind

06 August 2018

Taxation of benefits in kind in Luxembourg is based on the general principle that the benefits, both in cash and in kind, made available to the employee are considered as income and must therefore be subject to tax.

The valuation of non-pecuniary benefits is determined based on the market value of these benefits; in other words, it represents the cost that the employee would have to bear to obtain the benefit himself.

The grand-ducal regulation of 23 December 2016 and the circular LIR n°104/1 of 16 July 2018 set lump sum valuation rules in this respect.