Tax
Luxembourg’s €226m tax-office overhaul: what could change for taxpayers
The ACD wants a new platform, fewer paper returns and 85% digital processing by the 2028 tax year.
Luxembourg’s tax administration is preparing one of the biggest digital projects in its history. A draft law before the Chamber would invest more than €226 million in modernising the Administration des contributions directes.
The case for change is scale. In 2024, the ACD issued 880,000 tax cards, processed 580,000 returns and managed €16 billion in tax revenue. Much of the system still depends on paper and infrastructure dating back to the 1970s and 1980s.
The target is a new internal platform, better exchange between taxpayers and officials, and 85% digital processing by the 2028 tax year. Paper declarations are expected to remain possible.
The political questions are cost, vendor dependence and human contact. MPs broadly accept modernisation, but warn that tax data is among the most sensitive information citizens hold.
Frequently asked
- Will paper tax declarations disappear?
- The ACD says paper declarations should remain possible.
- Why is the project so expensive?
- The administration says it covers more than software, including processing, controls and complex integration.
Sources
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