Tax compliance in Luxembourg: corporate income tax, municipal business tax, net wealth tax and value added tax fully managed. Accurate and timely filings, 100% digital.
Legal tax obligations for Luxembourg companies
Every company established in Luxembourg is subject to strict tax obligations defined by the Direct Tax Administration (ACD) and the Registration Duties and VAT Administration (AED). Tax compliance is not only a legal obligation but a key element of your company's reputation and sustainability.
Complex and evolving tax environment
The Luxembourg tax system combines sophisticated national rules with European directives and OECD international standards. This complexity, combined with constant regulatory changes such as the recent introduction of Pillar Two or ATAD modifications, requires specialized expertise and continuous monitoring.
For over 20 years, our firm has supported companies in the complete management of their tax obligations. We combine in-depth knowledge of Luxembourg legislation with practical experience of international tax issues. Our approach goes beyond simple compliance: we optimize your tax burden while strictly respecting the legal framework.
Corporate income tax (CIT) and municipal business tax (MBT) returns for a given year must be filed by 31 December of the following year. Electronic filing via MyGuichet.lu is mandatory. Net wealth tax (NWT) returns must be filed by 31 December of the year concerned. NWT is due if the company exists on 1 January of the tax year.
Tax rates and tax charges
The overall corporate tax rate in Luxembourg amounts to 23.87% for companies established in Luxembourg City (17% CIT + 6.75% MBT after solidarity tax credit). This rate may vary depending on the municipality of establishment, with MBT rates ranging from 6.75% to 10.5%.
VAT returns are filed monthly, quarterly or annually depending on turnover. Since 2025, the franchise regime for small businesses has been raised to €50,000 annual turnover. Our tax compliance services guarantee compliance with all deadlines and support your complete tax planning.
Send us a message
Receive a personalized proposal within 48h
Tax expertise areas
Our firm supports Luxembourg and international companies in the complete management of their tax obligations
Corporate taxation
Complete management of your corporate tax obligations
- CIT - Corporate Income Tax
- MBT - Municipal Business Tax
- NWT - Net Wealth Tax
- Form 500 - Unified return for capital companies
- Calculation and management of quarterly advances
VAT & international trade
VAT compliance and international flow management
- Monthly, quarterly or annual returns
- ESL and Intrastat (thresholds: €250k arrivals / €200k dispatches)
- OSS/IOSS regimes for online sales
- Foreign VAT and fiscal representation
- Flow optimization and VAT recovery
Personal taxation
Tax support for executives and individuals
- Form 100 - Personal income tax return
- Withholding tax optimization (form 950)
- Real estate and securities capital gains
- Impatriate regime: 50% exemption capped at €400k/year
- Wealth and succession planning
Tax optimization
Legal strategies to reduce tax burden
- SOPARFI structuring and holding regime
- Tax consolidation and group integration
- IP Box regime: effective rate ≈ 4.774% (2025)
- OECD-compliant transfer pricing
- Exploitation of 88 tax treaties
Annual tax calendar
Punctuality in tax returns is crucial to avoid penalties and late interest
- Quarter 1 (January - March)
- February 10: MBT and NWT quarterly advance
- March 10: CIT quarterly advance
- Monthly VAT: 15th of each month
- Withholding tax: form 950 declaration within 10 days
- Quarter 2 (April - June)
- May 10: MBT and NWT quarterly advance
- June 10: CIT quarterly advance
- Quarterly VAT recapitulative statement
- Intrastat declaration if threshold reached
- Quarter 3 (July - September)
- August 10: MBT and NWT quarterly advance
- September 10: CIT quarterly advance
- Preparation of interim closures
- Current year tax optimization review
- Quarter 4 (October - December)
- November 10: Last MBT and NWT advance
- December 10: Last CIT advance
- December 31: Filing of CIT, MBT, NWT returns
- Next year tax planning
Frequently Asked Questions about Taxation in Luxembourg
Everything you need to know about your tax obligations
Which form and deadline for corporate tax returns in Luxembourg? +
For capital companies (SA, Sàrl, Sàrl-S, SAS, SCA, SE), the unified return '500' must be filed online via MyGuichet.lu and covers CIT, MBT and NWT; forms 200 (joint income assessment) and 300 (commercial income and MBT) mainly target fiscally transparent entities and partnerships, with form 205 applying to specific cases (notably reverse hybrid entities); CIT/MBT returns for year N must be filed by 31 December of N+1, while NWT returns for year N are due by 31 December of N; the filing campaign opens in early April and runs until 31 December; LuxTrust or eID authentication is required for filing. Annual accounts must be attached if not filed with the RCS; in case of late filing of forms 500, 300 or 200, the tax authorities set penalties and may apply sanctions.
What are the VAT rates and VAT return deadlines in Luxembourg? +
The standard VAT rate is 17%, with reduced rates of 14%, 8% and 3% depending on the nature of goods and services. Periodic returns (monthly or quarterly based on turnover) must be filed electronically via eCDF by the 15th of the month following the relevant period, but the tax authorities apply in practice an administrative tolerance of 2 months for periodic filings (tolerance not provided by law and revocable). The annual VAT return is due on 31 December of the year following the reporting period, except if the frequency is annual, in which case the deadline is 31 October. European Sales Lists (ESL) must be filed by the 25th of the month following the period; for services, frequency is optional (monthly or quarterly); for goods, it's monthly by default, with quarterly option only if the amount of intra-community supplies hasn't exceeded €50,000 in the current quarter and in each of the four previous quarters.
How to process salary withholding tax in Luxembourg? Deadlines and frequency? +
Salary withholding tax is the tax withheld by the employer on employee remuneration. Since 1 January 2025, the 'Declaration of withholding tax on remuneration and tax credit bonuses' must be filed online via MyGuichet.lu using form 950 (LuxTrust/eID authentication), by the employer, pension fund or a representative. Declaration and payment are due within 10 days after the end of the period. Frequency depends on total monthly withholdings: monthly if ≥€750, quarterly if €75 to <€750, annual if <€75. Payment is made to the competent tax office mentioning the tax number, relevant period and declaration reference. Form 950 also covers tax credit bonuses (e.g. CIS, CISSM).
How to optimize the tax burden in Luxembourg? +
Tax optimization relies on appropriate legal structuring (Sàrl/SA, SOPARFI, SCS/SCSp), proper application of treaties to avoid double taxation, OECD-compliant transfer pricing policies (local/master file, potential APAs) and controlled use of special regimes (participation exemption, IP 'nexus' regime). This includes neutral reorganizations (contributions, mergers, splits), financing management and interest limitations, VAT optimization of flows and supply chain, international mobility of executives/employees, as well as planning for losses and credits utilization. Our tailored advice covers diagnosis, quantified scenarios, legal and accounting implementation, documentation and governance (substance, DAC6), with annual monitoring to maintain compliance and performance.