Tax declaration

Donations to the Waqf Luxembourg Foundation are tax-deductible in Luxembourg.

To be eligible for tax deduction, the total annual donations must be equal to or greater than €120.

Donations made to the Foundation are deductible as special expenses since 2019.

Example 1

Mr X is single and has an annual taxable income of €50,000. He is taxed in class 1 and must pay €9,743 in taxes.

If he makes a €500 donation to the Waqf during the year to support the operating costs of a mosque, his taxable income is reduced to €49,500 and he will pay €9,534 in taxes.

Mr X therefore saves €209 in taxes after making a €500 donation, which represents 41.8% of the donation.

Example 2

Mr and Mrs Y are married and have a combined annual taxable income of €90,000. They are taxed in class 2 and must pay €15,334 in taxes.

If they make a €5,000 donation to the Waqf during the year to finance the construction of a mosque, their taxable income is reduced to €85,000 and they will pay €13,363 in taxes.

Mr and Mrs Y therefore save €1,971 in taxes after making a €5,000 donation, which represents 39.4% of the donation.