Cross-border taxation: refund of overpaid income tax

A Polish citizen resided and worked in Luxembourg until 1st May 2019 before moving to France. After filing his Luxembourg tax return for 2019, he received a decision from the Administration des contributions directes (ACD, Direct taxation authorities) in July 2020 informing him of a tax overpayment. However, a provision of Luxembourg income tax law states that an overpayment of tax is no longer subject to refund if the taxpayer leaves Luxembourg during the year.

The citizen therefore turned to SOLVIT to assert his rights. After extensive consultations between SOLVIT and the ACD, a joint agreement was reached and the overpayment was returned to the citizen.