Yesterday, as part of the implementation of the measures taken by the Luxembourg Government to deal with the spread of the Coronavirus, the Luxembourg tax authorities announced a series of positive measures for Luxembourg taxpayers, intended to guarantee the continuity of the Luxembourg economy.

Luxembourg individual and corporate taxpayers who have business income, income from agriculture and forestry or income from independent professional services may request:

  • a cancellation of the quarterly advances of (corporate) income tax and municipal business tax in relation to the 1st and 2nd quarters of 2020. However, it is not possible to cancel the net wealth tax advances. The form to be used for the request is available here.
  • an extension of 4 months of the deadline for the payment of (corporate) income tax, municipal business tax and net wealth tax. This extension is only possible for taxes with a due date as from 1 March 2020, meaning that an extension is not possible if the due date was 29 February 2020 or earlier. The form to be used for the request is available here.

It is important to note that even though the request for cancellation and/or extension has to be (briefly) justified, the cancellation/extension will be accepted automatically by the Luxembourg tax authorities, which means that the tax authorities will not assess how significant the liquidity issues of the taxpayer are.

As a last measure, the deadline for filing the tax returns has been extended to 30 June 2020. This applies to both individual and corporate taxpayers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.