Due to the crisis resulting from the spread of Covid-19, the Government has decided to introduce several tax measures in favour of legal and natural persons. The main objective of these measures is to alleviate the financing and liquidity needs of corporations and self-employed persons strongly impacted by the current economic environment.
With regard to direct taxes, the modalities of the advance tax payments and payment deadlines will be adapted for corporations and self-employed persons. More specifically, legal persons and natural persons carrying out an activity generating trade and business income, agriculture and forestry income, or income from independent professional services, who are experiencing liquidity problems due to the Covid-19 pandemic, can apply for a cancellation of the two first quarterly advance tax payments of the year 2020 (due in March and June 2020). Covered by this measure are (corporate) income and municipal business taxes.
In addition, these same persons may request, for taxes due after 29 February 2020, a payment extension of four months. On this deferral, no interest on late payment will be due and it covers (corporate) income, municipal business, and net wealth taxes.
To benefit from these two aforementioned measures, it is sufficient to send the two newly created forms to the competent tax office of the Administration des contributions directes. The forms can be downloaded at the following address:
The request is automatically accepted upon receipt by the administration.
It should also be noted that the deadline for submitting tax returns has been extended to 30 June 2020. The new submission date is applicable for both legal and natural persons. The deadline for submitting, revoking or modifying a request for individual taxation is postponed to the same date.
With regard to indirect taxes, the Administration de l'enregistrement, des domaines et de la TVA will reimburse this week all VAT credit balances below 10,000 euros. This measure allows to satisfy the liquidity needs of around 20,000 companies established in the Grand Duchy.
Press release from the Luxembourg Ministry of Finance