Covid-19 tax extensions for businesses and individuals


The headquarters of Luxembourg Inland Revenue (ACD) is seen in this 2015 library picture taken by Christophe Olinger 

The government announced “several tax measures” for legal persons (companies and self-employed people) and natural persons (individual taxpayers) in response to the coronavirus outbreak.

The finance ministry said on 17 March:

“The main objective of these measures is to alleviate the financing and liquidity needs of businesses and the self-employed who are strongly impacted by the current economic restrictions.”

The finance ministry stated:

  • Firms and self-employed people can make a “simple request to cancel tax advances for the first two quarters of 2020.” The extension includes local taxes. This covers taxes due on commercial, agricultural and forestry, and liberal professional activities.
  • Income tax (for local authorities), municipal commercial tax and wealth tax payments due after 29 February 2020 can be paid up to four months late without interest or penalties.
  • Forms are available on the Luxembourg Inland Revenue (ACD) website and “the request is automatically accepted upon receipt by the administration.”
  • “The deadline for submitting tax returns has been extended to 30 June” for both companies and individuals.

According to the finance minister, this week the Registration Duties, Estates and VAT Authority (AED):

“will reimburse all VAT credit balances below €10,000. This is a measure which will support the liquidity needs of around 20,000 companies based in the grand duchy.”