Tax regularisation

This page was last modified on 27-01-2016

A temporary tax regime enables persons, who have not yet declared certain income or other assets received, to rectify their tax situation with the Luxembourg Inland Revenue (Administration des contributions directes - ACD) and the Indirect Tax Authority (Administration de l'enregistrement et des domaines - AED).

The aim is to prevent taxpayers who have come forward to pay their undeclared taxes from becoming subject to sanctions foreseen by general tax law.

Regularisations are possible until 31 December 2017 at the latest.

Who is concerned

Natural and legal persons, resident or not, can submit a corrective tax return.

Taxpayers who are currently under investigation by the tax services or against whom administrative or court proceedings are initiated in relation with tax cannot submit a corrective tax return.

Duration and deadlines

The corrective tax return must be submitted by 31 December 2017 at the latest.

How to proceed

Income concerned

The corrective tax return only applies to taxable income and all other assets held.

Income and assets resulting from the following are taken into account:

  • business profits;
  • agricultural and forestry profits;
  • self-employed activities (liberal professions);
  • salaried activities;
  • pensions or annuities;
  • renting out property;
  • movable assets;
  • miscellaneous net income.

Income and assets from the last 10 years can be subject to a corrective tax return.

Corrective tax return

The corrective tax return must be submitted on plain paper to the tax office concerned.

It must be accompanied by supporting documents which are necessary for examining the case. These are namely:

  • an affidavit (sworn statement) attesting that the corrective tax return includes all undeclared income to date;
  • a detailed description of the facts. The written document must present the origin of undeclared assets held in a detailed and circumstantial manner and be accompanied by documentary proof:
    • justifying the origin of the assets; or
    • providing enough elements to establish the origin of said assets;
  • such as, a certificate from the establishments, namely banking establishments where the assets are kept, attesting that the bank statements are complete;
  • for legal persons: corrective financial accounts..
The corrective tax return must be unique and complete. Hence, it is not possible to submit several applications for regularisation.

Full payment of the tax

Taxpayers who have submitted a corrective tax return are subject to the full payment of the amount indicated on the revised tax assessment increased by:

  • 10 % if the corrective tax return is submitted between 1 January and 31 December 2016;
  • 20 % if the corrective tax return is submitted between 1 January and 31 December 2017.

Payment must be made within one month from the notification of the revised tax assessment.

If the payment is made after that deadline or if the amount of undeclared taxes is not paid in full, the taxpayer can no longer invoke the benefit of regularisation of tax debt and becomes subject to the sanctions foreseen by the law.

The additional tax charge for failure to submit a tax return or late tax returns will not be applied.

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