Tax compliance in Luxembourg

A company resident in Luxembourg files annual returns covering corporate income tax, municipal business tax and net wealth tax, and the three are usually prepared together from the closed accounts. In the ACD’s example of a company in Luxembourg City, the overall rate on profits is 23.87% from 2025, combining corporate income tax, the employment fund contribution and municipal business tax. Net wealth tax is charged at 5 per thousand on taxable wealth up to 500,000,000 euros. For a foreign-owned company the harder questions sit around the returns: whether the company is really managed from Luxembourg, how loans and charges between group companies are priced, and whether dividends or interest paid abroad trigger withholding. A tax compliance firm prepares the returns, follows the assessments and answers the administration’s questions.

Firms offering tax compliance in Luxembourg

OLISTONE

Accounting firm · Boutique firm

Steinsel

  • Company formation
  • Accounting and bookkeeping
  • Tax compliance
  • +6 more

Languages: English · French

View profile of OLISTONE

94 more firms offering tax compliance in Luxembourg

What to ask a tax adviser in Luxembourg

Ask which returns the firm will file for your company and how it tracks each deadline and assessment. Ask how it documents intra-group prices and whether it can explain the substance a Luxembourg company is expected to show, such as local directors and board meetings held in the country. If the shareholders live abroad, ask whether the firm also looks at how the double tax treaty with their country applies. Find out who replies when the tax office sends a request, and whether that work is inside the fee.

Firms on Accountanty

Nearly every firm listed in Luxembourg, 118 of 119, handles tax compliance. They split into 78 accounting firms and 40 corporate service providers; 80 are small, 19 medium-sized and 19 part of large networks. Forty-seven say they focus on foreign clients. Ninety-one are in Luxembourg City, and smaller groups work from Strassen, Bertrange and Senningerberg. For the indirect side, see VAT in Luxembourg.

Frequently asked questions

Which tax returns does a Luxembourg company file each year?

A resident company files annual returns for corporate income tax, municipal business tax and net wealth tax, normally prepared from the approved accounts. Ask your adviser for a calendar that also shows advance payments and the VAT returns.

Why does substance matter for a Luxembourg company owned from abroad?

Where a company is managed affects where it is taxed and whether treaties apply to it. Advisers in Luxembourg usually look at who the directors are, where the board meets and decides, and whether the company has its own premises and staff.

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General information, not legal or tax advice. Rules, rates and fees change: check them with the official sources linked on this page or with a qualified adviser before you act.