In the context of the Covid-19 state of emergency, the Luxembourg authorities have adopted a set of measures with the view to allow economic actors to face temporary liquidity constraints and administrative delays in respect of their filing obligations. The first measures are the following:
Upon request corporate taxpayers facing liquidity issues can request:
- Annulation of the tax advances (corporate income tax and municipal business tax) for the first and second quarter of the year 2020.
- Extension of the deadline for the payment of their corporate income tax, municipal business tax and net wealth tax.
Those requests are accepted by default from the Luxembourg tax authorities.
The requests should be made using the forms made available by the tax authorities.
In addition, the deadline for the filing of the tax returns is extended to 30 June 2020.
For more information, you may consult the latest newsletter from the Luxembourg direct tax authorities here:
Any eventual late filing of VAT returns would not be administratively sanctioned. This tolerance applies until otherwise indicated by the Luxembourg VAT administration.
This week, the administration will reimburse any VAT credits below EUR 10,000. We expect other measures to be adopted that we will communicate to you as soon as enacted.
Accounting and financial reporting
Luxembourg companies will have an additional administrative period of 4 months to file their financial statements with the Luxembourg trade and companies registry. Luxembourg entities shall have therefore until 30 November 2020 to proceed to the legal filings without suffering any increased filing costs or penalties.
Any request for assistance or information? Do not hesitate to contact our tax team and in particular KAK@vdblaw.com
Please note that we will continue to keep you abreast of any developments regarding your tax and administrative obligation as soon as released.