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.
The deadline for filing the written request for the application of the fiscal unity for tax year 2015 is 31 December 2015.
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.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.