Tax: Luxembourg Direct And Indirect Tax Support Measures

The Luxembourg government has announced measures to support the Luxembourg economy during the coronavirus crisis. The practicalities of some of these measures were recently clarified by the indirect tax authorities (Administration de l'Enregistrement, des Domaines et de la TVA) and the direct tax authorities (Administration des Contributions Directes). Some of the measures that have been announced are summarised below.

Direct tax measures

Companies and certain professionals experiencing liquidity issues as a result of the Covid-19 pandemic may apply for:

cancellation of advances on income tax (impôt sur le revenu), corporate tax (impôt sur le revenu des collectivités) and municipal business tax (impôt commercial communal) for the first and/or second quarters of 2020 (the form is available here); advances on net wealth tax (impôt sur la fortune) are not covered by this measure; a four-month, interest-free extension for the payment of income tax (impôt sur le rev-enu), corporate tax (impôt sur le revenu des collectivités), municipal business tax (impôt commercial communal) and net wealth tax (impôt sur la fortune) (the form is available here), for taxes due after February 29; the extension does not apply to payroll tax.

Requests for the cancellation of advances and for payment extensions will be automatically accepted by the direct...