Luxembourg: Deadlines for functional currency, fiscal unity, net wealth tax

Applications for Luxembourg functional currency regime

Taxpayers are required to file a written request with the Luxembourg tax authorities for application of the functional currency regime. The deadline for the application request is three months before the end of the first financial year of the company (i.e., 30 September 2015 for companies with a year-end of 31 December 2015). Companies incorporated during 2015 and having a calendar year-end will need to file their written request by 31 December 2015 at the latest. Otherwise the request is due at the respective year-end during 2015.

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Fiscal unity

The deadline for filing the written request for the application of the fiscal unity for tax year 2015 is 31 December 2015.

Net wealth tax

With the end of the calendar year approaching, taxpayers need to begin preparations so as to comply with the 2016 net wealth tax computation rules. The unitary value (being the net wealth tax basis) of Luxembourg fully taxable companies is computed each year on 1 January, based on the latest financial year-end situation (31 December for companies having a calendar year). There is some time left to identify non-exempt assets (such as cash, deposits, non-qualifying shareholdings, properties in non-treaty countries) financed by equity and to take appropriate actions to address the 2016 net wealth tax exposures in the Luxembourg companies of the corporate group.


Read a September 2015 report [PDF 113 KB] prepared by the KPMG member firm in Luxembourg.

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