Taxes in Europe Database v2
Law on trade tax of 1 December 1936 as amended by Provisions of 31 March 1943, 16 November 1943 on the levying of trade tax in simplified form; and amended by the Laws of 22 November 1973 (Mémorial A, 1973, p. 1545-1546), 1 July 1981 (Mémorial A, 1981, p. 989), 31 July 1982 (Mémorial A, 1982, p. 1474), 14 June 1984 (Mémorial A, 1984, p. 1073), 22 February 1986 (Mémorial A, 1986, p. 824), 19 December 1986 (Mémorial A, 1986, p. 2330), 6 December 1990 (Mémorial A, 1990, p. 1013), 24 December 1996 (Mémorial A, 1996, p. 2911); 12 February 1999 (Mémorial A, 1999, p. 190); 21 June 1999 (Mémorial A, 1999, p. 1892); 15 June 2004 (Mémorial A, 2004, p. 1568) and various Grand Ducal and Ministerial Regulations.
Trading profits, with certain increases and certain deductions (the percentage of profits received from partnerships (sociétés de personnes) liable to trade tax).
An allowance of EUR 40,000 is granted on profits made by natural persons and partnerships (sociétés de personnes) and of EUR 17,500 on profits made by companies limited by shares (sociétés de capitaux).
As a general rule, those persons or companies are exempted which are also exempted from corporation tax.
The national corporate income tax rate is multiplied by the local government surcharge (fixed between 200% - 400%).
Tax is payable annually on the basis of tax returns within one month after receipt of the tax assessment notice.
Tax is paid in quarterly instalments in advance. The advance payments are deductible against final tax liability. Any overpayment of tax is refunded.
Administration of direct taxes (Administration des contributions directes).
The same as for residents, since the tax is levied on the enterprise by virtue of the fact that it is located in Luxembourg, regardless of who the owner is.
Without limit for losses incurred in 1991 and thereafter.