We will prepare all your tax returns for you on the basis of the annual accounts as well as the compulsory – and for each type of taxpayers – specific annexes. In particular, we will systematically analyse for you the various possibilities to benefit from any tax concessions and advantages.
Value added tax returns
In addition to the initial declaration (déclaration initiale) of your company with the Luxembourg Registration Duties, Estates and VAT Authority (Administration de l’enregistrement, des domaines et de la TVA – AED), we can also assist you in the preparation of your monthly, quarterly and/or annual VAT return. Our work also includes, in particular, the preparation of the legally required annexes to the respective declarations provided for in the provisions of the law of 12 February 1979 on VAT (Loi du 12 février 1979 concernant la taxe sur la valeur ajoutée).
We also prepare the required (monthly or quarterly) recapitulative statements on your deliveries of goods and services within the EU.
On request, we can also prepare the necessary « INTRASTAT » declarations for you with the Intrastat department (Service Intrastat) of the National Institute of Statistics and Economic Studies (Institut national de la statistique et des études économiques – STATEC), where your transactions in intra-Community trade must be declared every month.
If you wish to either cease doing business in Luxembourg altogether or continue doing so under greatly changed conditions, we will file a proper cease-and-desist declaration on your behalf or deregister your business in due form.
Corporate income and Communal business tax return
The corporate income tax (impôt sur le revenu des collectivités) is a specific proportional tax calculated on the basis of the operating profit earned and levied by the Luxembourg Inland Revenue (Administration des contributions directes – ACD). It affects not only Luxembourg companies but also permanent establishments of foreign companies (in the Grand Duchy of Luxembourg).
The communal business tax (impôt commercial communal) is also calculated on the basis of the operating profit achieved, which, however, varies from municipality to municipality. It is levied by the Luxembourg Inland Revenue (Administration des contributions directes – ACD) for the respective municipality.
In certain constellations, a tax credit is eligible.
We analyse for you whether this option is suitable for your company.
Net wealth tax return
The net wealth tax (impôt sur la fortune) is based on the net assets of the holding and is usually set for a period of three years.
Under certain conditions, we can negotiate a reduction in wealth tax for you.
Declaration on subscription tax
This tax is a registration tax on the negotiability of securities and concerns, for example, only family wealth management companies (société de gestion de patrimoine familial).
We will be glad to advise you as to whether this is a suitable form of company for your project. If appropriate, we will make these declarations on behalf of your company and file them with the Luxembourg Registration Duties, Estates and VAT Authority (Administration de l’enregistrement, des domaines et de la TVA – AED).
Withholiding tax return on capital gains
As soon as a dividend or similar payment – cf. article 146 of the amended law of 4 December 1967 on income tax (Loi modifiée du 4 décembre 1967 concernant l’impôt sur le revenu (L.I.R.)) – is distributed in your company, a withholding tax return must be submitted and the tax paid.
We will be pleased to advise you on the amount to be withheld and submit the corresponding withholding tax return to the Luxembourg Inland Revenue (Administration des contributions directes – ACD) on your behalf.
Appeals in tax matters
We are also offering you our support at this stage and let you benefit from our experience.
First of all, we check the chances of success of an appeal for you and advise you on how you can best proceed.
Basically, there are two approaches, depending on how far the proceedings have progressed:
Appeal against the administrative act (RÉCLAMATION)
We first analyse the underlying notices of the tax offices (Administration des Contributions Directes or Adminstration de l’Enregistrement et des Domaines) and examine the prospects of success of a challenge within the legally prescribed time limits; in particular in the case of discrepancies between the tax notices received and the returns filed (direct taxes or VAT).
If the decision is negative for you and you wish to appeal to the administrative court for an amendment, we recommend a specialised tax law firm that can represent your interests in the best possible way.
Formal hierarchical appeal (RECOURS HIÉRARCHIQUE FORMEL)
In the case of assessments of surcharges or penalties by the tax office, we file a request for reduction or annulment of the tax penalty imposed, if applicable, after appropriate review. This is not a matter of challenging the legal basis of the decision taken, but rather of doing the best we can on your behalf to obtain a modification of the decision based on discretionary considerations.