The Grand Duchy of Luxembourg has three tax authorities:
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;
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.
Taxes and duties you need to pay depend on the legal status of the company.
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.
Value-added tax (VAT) is charged on goods and services consumed.
The Centre de formalités (Chamber of Trades) and the Espace entreprises (Chamber of Commerce) provide help with formalities and administrative procedures.
The Guichet entreprises business portal provides online 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.
Once it has been registered, the business will be assigned a VAT identification number and an IBLC number.
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.
If there is a dispute, the Direct Taxation Authority and the Luxembourg Registry give you options for appealing.
The Guichet entreprises business portal provides information on tax issues.
You can find details on Luxembourg taxation in the Mémento fiscal (tax guide).
You can find extensive information on the websites of the Chamber of Commerce (commerce, industry and services) and Chamber of Trades (crafts).