Taxes - Luxembourg

Updated 01/2010

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Legal requirements

Taxation system

The Grand Duchy of Luxembourg has three tax authorities:

• Direct Tax Administration
• Customs and Excise Administration
• Luxembourg Registry

The main taxes are:

• corporate income or value-added tax (VAT);   
• corporate profit tax;   
• tax on profits distributed by the company;   
• tax on capital and operating assets;
• Taxation

If you do not pay tax by its due date, you will incur interest charges. However, a company can apply for a deadline extension or instalment payments.

• Deadlines
• Additional deductions for late payments

Direct taxes

Taxes and duties you need to pay depend on the legal status of the company.

• Taxation based on the legal form of the company
• Direct and indirect taxes
• Applying personal income tax to a sole trader business or a tax-transparent partnership
• Applying corporate income tax to a stock corporation
• Paying municipal business tax

If a company meets certain criteria, its profits are taxable in the Grand Duchy. Your tax liability will depend on whether or not there are tax agreements between the country of residence and Luxembourg.

• Status of agreements in force
• Status of agreements under negotiation

Indirect taxes

             Value-added tax   (VAT) is charged on goods and services consumed.

• Understanding value-added tax
• Applying VAT to deliveries of goods
• Applying VAT to services provided
• Applying VAT to eCommerce
• Deducting VAT collected upstream

Administrative procedures

The Centre de formalités (Chamber of Trades) and the Espace entreprises (Chamber of Commerce) provide help with formalities and administrative procedures.

• Centre de formalités - Chamber of Trades
• Espace entreprises - Chamber of Commerce

The Guichet entreprises business portal provides online forms.

• Forms  

Registering for VAT

In order to register for VAT, you must submit an initial declaration, accompanied by certain other documents, to the competent tax office.

• Competent tax office
• Luxembourg Registry

Once it has been registered, the business will be assigned a VAT identification number and an IBLC number.

• Registering for VAT with the Luxembourg Registry
• Registering online - eVAT portal

Submitting your tax declaration

A company must send an income tax return to the relevant revenue office by a fixed deadline. If the return is sent late, financial charges are incurred.

• Forms - Direct Tax Administration  
• Tax schedule

If there is a dispute, the Direct Taxation Authority and the Luxembourg Registry give you options for appealing.

• Appeal options: VAT - Administration de l'enregistrement et des domaines
• Appeal options: direct contributions

Resources

The Guichet entreprises business portal provides information on tax issues.

• Taxation - Guichet d'entreprises

You can find details on Luxembourg taxation in the Mémento fiscal (tax guide).

• Mémento fiscal [1 MB]

You can find extensive information on the websites of the Chamber of Commerce (commerce, industry and services) and Chamber of Trades (crafts).

• Chamber of Commerce
• Chamber of Trades

Check also the legislation on this topic in:

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen