Last Wednesday, 14 December 2016, the Luxembourg parliament passed the 2017 tax reform (parliamentary document n° 7020). A request to dispense the second vote has been filed with the State Council.
Nearly all measures have been passed as described in our Tax Alert of 29 July 2016 for individuals and for corporations. This Tax Alert lists all changes and clarifications which occurred during the legislative process and are of importance for corporations. A separate alert summarises the measures concerning individuals.
Electronic filing of corporate tax returns
It has been clarified during the legislative process that the obligation of capital companies to electronically file their corporate tax returns applies for the tax returns of the fiscal year 2017. Consequently, the deadline for this first electronic filing will, in principle, be 31 May 2018. The electronic filing will be done via MyGuichet (PDF | 1.12MB), an interactive platform available on www.guichet.lu.
Deferral method for standard depreciation and amortization
Under this new method, taxpayers will have the option to defer the deduction of their annual depreciation or amortisation expenses. Based on the parliamentary documents, it appears that the option shall be most likely exercised by ticking a box in the annual tax return. A formal request should not be required.
Liability of legal representatives for VAT payment
The personal and joint liability of legal representatives for the VAT payment of companies has been limited to directors who are in charge of the daily management (including de facto and de jure directors) only in case of culpable non-compliance (“inexécution fautive”) with their legal obligations. The daily management includes all acts which must necessarily be accomplished day by day to ensure the functioning of corporate affairs. Liquidators and trustees are not subject to this secondary liability.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.