TaxesNo changes to be made in transition period following partner's death

RTL Today
Minister of Finance Pierre Gramegna conveyed this information in his response to a parliamentary enquiry from MP Sven Clement (The Pirate Party).

The MP expressed his belief that the current tax system eventually ends up punishing widows and widowers on top of their grief. The death of a partner is followed by a three-year-long transition period, after which the living tax payer will be reclassified from category 2 to category 1A. Clement thus enquired about the annual number of affected people and if the government could potentially afford to abolish the measure.

In his response, Minister Gramegna underlined that the system in no way reflects a “widow’s tax”, as MP Clement called it in his enquiry. The minister further explained that it is “an efficient tool to absorb the transition” and that there are no plans to change the system.

The minister’s response also provided insight into the number of people that are annually concerned by the measure: 1,675 in 2016, 1,600 in 2017, 1,651 in 2018, 1,654 in 2019, and 1,857 in 2020. However, due to a number of technicalities, it is not possible to project the potential loss of revenue for the government in the absence of the system, Minister Gramegna concluded.

PDF: Parliamentary enquiry and response (LUX)

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