Tax bureaucracy: Luxembourg struggles with delays in processing declarations

MP Corinne Cahen (DP) raised an important issue in parliament - the delays in tax recalculation and slow processing of tax returns experienced by Luxembourg households. Many citizens, she said, wait years for updates on their tax files and receive only formal replies from the tax bureaux: "Your tax return will be processed".

In an official response, Finance Minister Gilles Roth (CSV) provided statistics and outlined the reasons for the situation. As of the end of January 2025, there are still: 

• 0.6 per cent of tax cases for 2020
• 2.15% in 2021
• 7.27% in 2022

It is important to note: back in January 2024, the percentage of unprocessed declarations for 2022 was 33.73 per cent - that is, progress is evident, but the problem has not disappeared.

The Minister emphasised that the place of residence or a particular tax office has no significant impact on delays. All cases are, by rule, dealt with on a first-come, first-served basis.

However, he also pointed out a number of factors affecting processing times: the complexity of the file, the date of filing the return, and the level of co-operation of the taxpayer himself. An additional element was the postponement of the filing deadline - from 2022, declarations can be filed until 31 December, which automatically shifts the work schedule of the tax service.

In order to eliminate congestion, the ministry relies on the expansion of its staff, as well as on the digital transformation of the tax system. Even today, most declarations remain paper-based, but with the introduction of the MyGuichet service and automatic pre-filling of declarations, which will start this year, the situation should gradually improve.