Tax 6 min read
Corporate tax in Luxembourg: profit, net wealth and annual returns
Luxembourg corporate tax explained through taxable profit, losses, net wealth, Form 500 and advance payments for ordinary resident companies.
Corporate tax returns and VAT in Luxembourg
We prepare your company’s tax returns from its accounts and transactions. We handle its corporate income tax, municipal business tax, net wealth tax and VAT, and keep track of the filing dates.
How we can help
We agree what we will handle and who is responsible for each part, then confirm it in the engagement letter.
Our work
- Corporate tax returns We prepare the returns for corporate income tax and municipal business tax, both charged on profits, and for net wealth tax, depending on your company’s situation.
- VAT We review the VAT treatment of your transactions and prepare the VAT returns and, for transactions with other EU countries, the recapitulative statements required.
- Tax calendar We check that the returns match the accounts and follow up on tax prepayments, known as advances, and on assessments.
- Tax authority correspondence We help you respond to questions from the tax authorities, using the accounts and information in your file.
Separate responsibilities
- Appeals and legal matters If litigation or a legal question falls outside our engagement, we work with your lawyer on the accounting and tax information they need to advise you.
Tax returns connected to the underlying accounts
Tax returns draw on the accounting records and the treatment of transactions during the year. Acquisitions, financing and distributions may need additional analysis, so these are identified before filing.
For HoldCos and SPVs, we check how shareholdings and financing affect the company’s tax position. VAT has its own filing requirements. Before a proposed transaction, we review its tax consequences, with specialist advisers where needed.
For an initial estimate of tax on company profits, the Luxembourg tax simulator provides an indication based on simplified assumptions. The result needs to be confirmed against the company’s circumstances.
If your team needs to understand a VAT issue or the company’s returns, we prepare Luxembourg tax training around that question.
What you receive
| Item | Content | When |
|---|---|---|
Corporate returns | Form 500 and applicable schedules | Every year |
VAT returns | Periodic and annual returns, recapitulative statements where your transactions require them | Monthly, quarterly or annually, as set for the company |
Tax follow-up | Check of tax prepayments and assessments | At each deadline |
Authority responses | Written responses and supporting information | For each request |
How do we get started?
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Identify the returns
We review the activity, tax treatment and filing obligations already in place.
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Review the information
We compare the accounts with earlier returns and review the year’s transactions, then explain anything that still needs clarification.
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Organise the filings
We plan the preparation and approval of the returns around their filing dates.
Do you have a specific tax question?
If we already look after your company, speak to your usual contact. For advice on a specific Luxembourg tax question, a 1-hour consultation at the office or remotely lets us discuss your situation without starting an ongoing engagement.
Let’s talk about your company
Tell us about your company and what you need from your accounting firm.
Contact the firm 
Frequently asked questions
Can you handle VAT separately?
We handle VAT alongside the company’s accounts and other tax returns, because all three rest on the same transactions. Your contact can help you work through a particular difficulty.
What if some returns are overdue?
We review missing returns and available accounts before agreeing the work needed. The accounting handover page explains how outstanding work connects with ongoing support.
Does tax filing include transaction advice?
Preparing returns includes the checks needed to complete them. A restructuring or a particular transaction is reviewed separately, with you and, where needed, specialist counsel.