Tax deduction for Christmas gifts in Luxembourg

Christmas gifts in Luxembourg: special expense from 120 euros a year, ceiling of 20% of net income, ACD list. An asbl is not deductible by default.

In short In Luxembourg, a Christmas gift is deductible as a special expense, but only if the year's gifts add up to 120 euros and the organisation is on the list of the Administration des contributions directes. The ceiling is 20% of net income. An asbl is not deductible by default.

This article describes the rules in Luxembourg.

How does the deduction for gifts work in Luxembourg?

A cash gift to an approved organisation is deducted from net income as a special expense (articles 109 and 112 L.I.R., the Luxembourg income tax law). It is not a tax reduction calculated as a percentage: the benefit depends on each donor's tax bracket.

So never promise "get half of your gift back". Write instead: "Your gift may be deducted from your taxable income, depending on your situation."

Which amounts and limits should you remember?

Three figures matter, all confirmed by the Administration des contributions directes (ACD):

  • Minimum: the year's gifts must add up to 120 euros. The threshold applies to the annual total, not to each gift.
  • Ceiling: the deduction cannot exceed 20% of total net income, or 1,000,000 euros.
  • Carry forward: whatever exceeds these limits can be carried over to the next 2 tax years, under the same conditions.

Purely as an illustration: with a net income of 60,000 euros, the annual ceiling is 12,000 euros. A donor who gives 150 euros in three gifts of 50 euros passes the minimum of 120 euros.

Which organisation can receive a deductible gift?

Only organisations that the ACD recognises give the right to a deduction. These are public benefit organisations with a philanthropic, religious, scientific, artistic, educational, social, sporting or tourism purpose, plus a few special categories, such as certain approved development NGOs registered with the Ministry of Foreign Affairs.

The ACD publishes lists of approved organisations. The year shown next to an organisation is the first tax year for which gifts to it are deductible.

Why an asbl is not automatically deductible

A non-profit association (asbl, association sans but lucratif), however active and serious, is not on the list by default. It must first have obtained public benefit status from the Ministry of Justice, and then appear in the ACD lists.

The list also changes: an organisation can lose its status. Before you write "deductible" on your page, check your own name in the current list, and check it again before every campaign.

What about an association based in another EU country?

The ACD treats comparable organisations with their seat in another member state of the European Union or of EFTA as equivalent, if they are recognised as serving the general interest under their national law. The details are in a circular that we have not read in full.

If your association is based outside Luxembourg, ask the ACD directly before you tell any Luxembourg donors anything.

What proof should you give the donor?

This point is not confirmed. The ACD pages we consulted describe no model of proof or receipt. Ask the ACD whether a document from the association is required and what it must say.

In the meantime, a thank-you message with the donor's name, the amount and the date remains good practice. It is not a confirmed requirement, and it does not replace the ACD's answer.

Which gifts count, and until when?

The ACD speaks of cash gifts, meaning money. Whether an online payment by card or transfer falls in that category is not confirmed: ask the ACD.

The tax return lists the gifts paid during the year. A Christmas gift therefore appears to count for the year of payment. This 31 December rule is our own deduction: the ACD does not state it in those words, so confirm it with them. Invite your donors to give before 31 December, without promising the very last days.

How to do it with WeGlow.world

If your organisation is on WeGlow.world, the donation page is set up in three steps: amount, details, summary. It accepts one-off and monthly gifts, works on mobile and asks for the donor's first name and e-mail. You can start for free with an account.

The page does not relieve you of checking your status with the ACD. It does help you thank each donor, with a thank-you text that you write yourself.

To give the campaign momentum, add a Christmas experience. The Glow Room is a 3D living room with a Christmas tree where every gift becomes a decoration. The Starry Sky turns every gift into a star, and you fly from star to star. These experiences remain concepts until the official launch: do not build your schedule on them without confirmation.

Each supporter can also start their own action page and rally their circle. For what comes next, read our Christmas campaign ideas for an association in Luxembourg, the guide to organising your Christmas campaign and the one on the online Christmas campaign. You can also create your account.

What schedule before 31 December?

A realistic schedule over 4 weeks:

  • week 1: check that you appear in the ACD list and prepare the donation page;
  • week 2: write the appeal message and the thank-you text;
  • week 3: launch the appeal and mobilise 5 to 10 people who share it;
  • week 4: remind everyone of the 31 December date, then thank each donor.

If your organisation is not yet on the list, do not announce it as deductible. Status is requested from the Ministry of Justice.

Frequently asked questions

From what amount is a gift deductible in Luxembourg?

The year's gifts must add up to 120 euros. This threshold applies to the annual total, not to each gift. A donor who gives 40 euros three times in the year therefore reaches the minimum, provided that all the recipients are approved.

Is an asbl automatically deductible?

No. The organisation must have public benefit status and appear in the ACD lists. Some organisations recognised before the law of 4 March 1994, without being designated by grand ducal decree, do not give a right to deduction either. Check your case with the ACD.

What happens if the gift exceeds the ceiling?

The ceiling is 20% of net income or 1,000,000 euros. The surplus can be carried over to the next 2 tax years, under the same conditions and within the same limits.

Is a receipt from the association mandatory?

This is not confirmed. The ACD sources we read describe no proof. Ask the ACD what it requires, then send that document to your donors with their thank-you.

Does WeGlow.world issue a Luxembourg tax certificate?

No. WeGlow.world does not issue a Luxembourg tax certificate. The donation page collects the first name, e-mail and amount. Status and any proof remain your responsibility. Confirm them with the ACD.

Sources

Information checked on 9 October 2026. This is not tax or legal advice: confirm your situation with the Administration des contributions directes.

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