A tax advisor is a key professional in Luxembourg’s financial and economic sphere. With the sheer number of companies established in the country, the volume of tax returns is phenomenal, and the related stakes are just as significant. Yet, this profession faces many challenges, as explained by Gerdy Roose, Head of Direct Tax Compliance at BDO.

Before diving into the heart of the matter, let’s clarify who we’re talking about. It is the expert in charge of the preparation of  tax returns that companies are required to file. Considering the volume of returns produced each year in Luxembourg, it’s fair to say that many tax advisors are carrying out this task. This tax advisor must also be able to advise clients and contribute to the overall strategy.

A key position

For businesses, the stakes are high: having a good tax advisor means avoiding mistakes but also taking advantage of the many optimization opportunities provided by the legislation. As we will see, taxation has become significantly more complex, therefore  it is essential to call upon a seasoned professional who can identify these opportunities.

A good tax advisor is active, reactive, but also proactive. He/she is a strategist with a vision, someone who understands structures and helps chart the course.

A complex subject

Taxation has indeed become a very complex field, with nearly infinite variations. “In 35 years—since I started working in this field—I have seen its scope and areas of application multiply,” our guest notes. As a result, fewer and fewer young people are drawn to this career path. “Mastering the entire body of tax knowledge is a difficult challenge today, and only a small number of professionals manage to do so,” Roose continues.

A talent shortage

Faced with the growing need for tax advisors in Luxembourg, one of the solutions implemented by BDO has been to recruit from across the Mediterranean! The company has opened a branch in Morocco and works with young professionals who receive solid foundational training and are then taught Luxembourgish tax law. Another alternative is, of course, the arrival of AI. “Automation will assist in preparing tax returns, but humans will remain at the center of the process,” says Mr. Roose, before adding: “AI integration also raises the issue of training: how can a young person become an excellent tax advisor if they don’t tackle all aspects of the field themselves and rely on the machine to do some of it for them?”

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