WHAT ARE THE MAIN TAX RETURNS IN LUXEMBOURG ?
As an entrepreneur in Luxembourg, you must submit certain declarations. Any failure, error, or missed deadline could lead to penalties, which is why it is necessary to be informed of your obligations.
Our chartered accountants and tax advisors are at your side to guide you and file your various declarations on time. By entrusting them with the management of your accounting and tax returns, you will save. Our support gives you serenity and security!
In Luxembourg, you are mainly liable to the Administration de l’Enregistrement, de Domaines et de la TVA (AED), the Administration des Contributions Directes (ACD) and the Centre Commun de la Sécurité Sociale (CCSS).
VAT declarations to the AED
VAT is an indirect tax collected by companies and borne by the final consumer. It is paid by the company to the EDA.
Your main obligations with the EDA are as follows:
- Initial declaration and deregistration
- VAT collection: throughout the reporting period you must collect VAT on all sales and services provided
- Deduction of VAT: on purchases and services purchased from suppliers during the reporting period. This requires the realization of a turnover.
- Preparation of the VAT return: at the end of each reporting period. For this, you will use an electronic form provided by the Luxembourg tax authorities.
Filing and payment:
Filing by the 15th of the month following the reporting period.
Penalties as well as automatic taxation in case of delay !
Payment must be made by the 25th of the month following the reporting period.
Interest may be charged for late payment!
Periodicity of your declarations :
Summary statements to the AED
Intra-Community supplies of goods :
Quarterly or Monthly
Intra-Community services provided :
Quarterly or Monthly – At the option of the declarant. In practice, the periodicity is based on the periodicity of the VAT return.
This is done by electronic transfer:
- The Financial Data Collection platform (eCDF) for the recapitulative statements relating to periods after 2017
- The eTVA-D application for recapitulative statements relating to periods prior to 2017
Taxes with the CDA
Corporate Income:
The commercial companies are fiscally opaque, they are as communities, taxpayers and subject to the corporate tax called community income tax.
This is a specific and proportional tax that affects the enrichment that certain groups have enjoyed during the year. Its rate will depend on your taxable income.
Applicable in particular to the following legal forms of capital companies: SA – SAS – SECA – SARL – SE – SARLS…
Wealth tax:
This tax affects the net assets of companies as they appear in their balance sheet at the end of the taxable period. It is established by way of a general tax base.
Applicable to opaque companies such as SA, SECA, SE, SARL for example. As well as to companies which hold a participation in a transparent company (for the share held), and also to non-resident opaque companies which will then be taxed only on the assets held on Luxembourg territory.
Municipal Tax:
This tax only affects the profit of commercial companies (communal rate for each city).
Commercial companies located in Luxembourg are concerned:
– Individual operators who generate an operating profit
– Partnerships with an operating profit
– Capital companies
These returns are made online on January 1st of the tax year N+1
Social contributions to the CCSS
One-time declarations :
- Entry and exit of an employee: within 8 days following the event on which the declaration is based
- Declaration of frontier workers (RTS tax)
- Periods of incapacity to work of employees
- Disaffiliation in case of cessation of activity
Monthly declarations :
- Salary slips
- Declaration of tax withholding on remuneration and bonus tax credits
The employer also declares the Benefits in Kind (ATN) and pays social contributions on their value.
Declaration of taxes on salaries: monthly, quarterly or annually.
Our accountants, tax advisors and payroll experts are at your side. They take care of your accounting, tax and social aspects.
More information on our personalized support: Fiduciary Services