Luxembourg - taxation rate

[bLanark]

I've been offered a contract in Luxembourg. The agency have put me in touch with a management company, who have produced a "financial profile" showing taking home 79% of gross. Yet, when I read the FAQ on this site, the taxation in Luxembourg can be up to 38.95%.

Is 21% tax realistic and legal? The profile showed taking a small (2,100 Euro) salary and paying tax, social security on that, but the remainder is an "allowance" paid into a (specifically) separate account.

It sounds too good to be true, which makes me suspect that it is!

[pmeswani]

I've been offered a contract in Luxembourg. The agency have put me in touch with a management company, who have produced a "financial profile" showing taking home 79% of gross. Yet, when I read the FAQ on this site, the taxation in Luxembourg can be up to 38.95%.

Is 21% tax realistic and legal? The profile showed taking a small (2,100 Euro) salary and paying tax, social security on that, but the remainder is an "allowance" paid into a (specifically) separate account.

It sounds too good to be true, which makes me suspect that it is!

First question I would ask is.... Are you restricted to working through this particular management company? If not, are there any other management companies you can contact?

If you have found information that is contrary to what you have been told by the Management Company, why not ask them questions about the different tax thresholds? What's the worst they can say?

[BlasterBates]

I've been offered a contract in Luxembourg. The agency have put me in touch with a management company, who have produced a "financial profile" showing taking home 79% of gross. Yet, when I read the FAQ on this site, the taxation in Luxembourg can be up to 38.95%.

Is 21% tax realistic and legal? The profile showed taking a small (2,100 Euro) salary and paying tax, social security on that, but the remainder is an "allowance" paid into a (specifically) separate account.

It sounds too good to be true, which makes me suspect that it is!

It is, basically it´s tax evasion. I wouldn´t touch it with a barge pole. In Luxembourg you declare all your income.

Get an offer from another co. ITECS for example.

[bLanark]

Replies appreciated

Thanks for the replies. The contract they have put together is awful, incorrect (and ambiguous) English, sometimes it refers to an "Employee" and other times a "Contractor". The UK agency will let me use any company I like, so I have contacted several others (that have been mentioned on these boards).

Cheers!
Alistair

[Boo]

Get an offer from another co. ITECS for example.

I'd search for threads on ITECS here before using them. That applies to any other intermediary as well, but ITECS especially...

Boo