As part of the implementation of the measures decided by the Government to deal with the spread of the coronavirus, a series of measures designed to guarantee the continuity of the Luxembourg economy have been put in place.

As long as they are experiencing liquidity problems as a result of the Covid-19 pandemic, legal entities and natural persons who make a commercial profit, an agricultural and forestry profit or a profit from the exercise of a liberal profession may apply:
1. a cancellation of their quarterly advances of the income tax (of communities) and of the municipal commercial tax for the 1st and 2nd quarter of 2020 (model cancellation of advances);
2. a payment deadline for the income tax, the municipal business tax and the wealth tax (payment deadline model).

Requests for cancellation of advances and payment deadlines are accepted automatically by the administration.

In addition, the deadline for submitting tax returns has been extended to 30 June 2020. This decision is applicable to legal entities and natural persons, as well as to taxpayers wishing to request, modify or revoke their individual tax election.

Frequently Asked Questions (FAQ)

Q: How do I submit my application to my tax office?

A: Simply complete the application, sign it and mail or email it to the appropriate tax office.

List of tax offices:

Corporate offices

Offices of natural persons

Q: Is it possible to request a payment deadline for the payroll deduction (RTS) made by employees?

A: No, payroll deduction is excluded from this request, as it is the employee’s deduction that the employer must continue to withhold from the Direct Tax Administration.

Q: Is it possible to apply for a payment deadline for taxes that are due before 1 March 2020?

A: No, only taxes that are due after February 29 are affected.

Q: Can my company request a cancellation of the advances for wealth tax?

A: No, only advances for income tax (individuals and communities) and business tax can be cancelled.

Q: Can we request the cancellation of the two advances for the first two quarters of the year 2020?

A: Yes, at this time you must check the boxes 1st quarter 2020 and 2nd quarter 2020.

Q: If I want the advances to be reduced to a certain amount, but not cancelled, can I make a corresponding request?

A: Yes, at this point in time, you need only contact the relevant tax office by letter, stating your request in figures and the reasons for it.