On 17 March 2020, the Luxembourg income tax authorities issued a series of measures designed to guarantee the continuity of the Luxembourg economy.
As part of the implementation of measures decided by the Luxembourg Government to deal with the spread of the Covid-19 pandemic, a series of measures designed to guarantee the continuity of the Luxembourg economy have been put in place by the Luxembourg direct tax administration and VAT administration.
As long as liquidity problems are faced due to the Covid-19 pandemic, corporates and individuals who realise a commercial profit, an agricultural and forestry profit or a profit from the exercise of a liberal profession, can apply for:
a cancellation of their quarterly advances for the corporate income tax (or income tax for individuals) and of the municipal business tax for the 1st and 2nd quarter of the year 2020 (please find the form here), the net worth tax is excluded; and
an extension of the payment deadline for the corporate income tax (or income tax for individuals), the municipal business tax and the net wealth tax (please find the form here).
Requests for cancellation of advances and payment deadlines are automatically accepted by the Luxembourg tax authorities.
In addition, the deadline for corporates and individuals for submitting tax returns has been extended to 30 June 2020.
Due to the Coronavirus pandemic, there will be no administrative sanction for exceeding a filing deadline for VAT returns. This tolerance will apply until the VAT administration indicates otherwise.
For further information on the tax measures please access the following links:
