Luxembourg prepares for a new era of online declarations

The Luxembourg tax administration is preparing for a major technological transformation. Jean-Paul Olinger, Director of the Direct Tax Administration, presented a reform plan to the Chamber of Deputies that aims to make the tax system "more equitable and efficient" by 2028.

The key decision is to abandon further development of proprietary software in favour of purchasing a ready-made commercial product. The project is large-scale: its cost will exceed €60 million, which means that a separate law on financing will be required. The government intends to submit the relevant text to parliament for consideration and launch a European tender within a short time frame. One of the fundamental conditions is that the supplier must be represented in Europe, which reflects the desire for technological sovereignty and a reduction in external risks.

The issue of data protection was at the centre of the discussion. According to Olinger, the developer company will not have access to taxpayers' personal information: the data will be processed exclusively in a "secure environment".

The new tool is planned to be put into operation as early as 2027. The goal is ambitious: by 2028, 85% of tax returns should be filed electronically, whereas now this figure barely reaches 25%.