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Luxembourg Announces COVID-19 Tax Support Measures

by Ulrika Lomas, Lowtax.net, Brussels
20 March, 2020

On March 17, 2020, Luxembourg's Ministry of Finance announced the relaxation of certain tax payment deadlines for companies and self-employed individuals affected by the coronavirus outbreak.

According to the ministry, taxpayers experiencing liquidity problems due to the COVID-19 epidemic can ask to cancel advance tax payments for the first two quarters of 2020. This measure covers local income tax and municipal business tax and can be claimed by legal persons and natural persons carrying out an activity for commercial profit, including agricultural and forestry profits and profits derived from the exercise of a "liberal profession".

Additionally, the same categories of taxpayer will be given up to four months to pay certain taxes due after February 29, 2020, without incurring late payment interest charges. This measure applies to local income tax, municipal business tax, and wealth tax.

These relief measures will be automatically granted by the tax authority on receipt of the relevant request form, which is available on the direct tax authority's website. Such requests must be submitted by June 30, 2020.

Furthermore, the Registration Duties, Estates and VAT Authority is currently reimbursing all value-added tax credit balances with a value of up to EUR10,000 (USD11,000). This measure is expected to benefit some 20,000 companies in Luxembourg.


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