Part 1 | Tax related measures

Summary of tax-related measures formally and informally adopted by the Luxembourg government and government bodies as at March 23, 2020

Direct taxes

• Filing deadlines for the 2019 direct tax returns of individuals and corporate taxpayers are automatically rescheduled to June 30, 2020.
  NB : Deadlines for other tax filings (salary withhold taxes, dividend withholding taxes, etc.) are not rescheduled. Overdue filings, including tax filings for previous years (e.g. 2018 tax returns) are not granted any additional extension and may incur fines if not promptly filed.

• Taxpayers that face liquidity issues due to the pandemic may request in writing a waiver, or reduction, of the corporate income tax and municipal business tax installments for Q1 and Q2 2020.
  NB: tax installments for net worth tax for the same periods are not covered by this measure and shall be settled as usual.

• Taxpayers that face liquidity issues due to the pandemic may also request in writing a 4-month payment deferral of any direct tax due on or after March 1, 2020.
  NB: taxes already due as at March 1, 2020 are not covered by this measure. However, it could be possible to request and obtain a payment deferral (subject to the payment of an interest) for this as well under normal rules.

Value Added Tax

• The Indirect Tax Authorities have refunded VAT due to taxpayers up to EUR 10,000.

• Fines for late submission of VAT filings have been suspended until further notice.

• Payments of VAT are otherwise not affected by relief measures (so far) and must be settled as usual.

Maprima is constantly following the situation. If you need assistance in applying any of the above measures, please contact your account manager.