Luxembourg Tax Alert 2021-03

Luxembourg Tax Alert 2021-03

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Extension of deadlines for filing tax returns

Draft law published!

The draft law, extending certain deadlines for individual and corporate tax returns has been filed with the Luxembourg Chamber of Deputies under Bill 7746 (“the Bill”). The extension was announced by the Prime Minister in December 2020 (please refer to Luxembourg Tax Alert 2020-22) and was granted due to the ongoing pressure on individuals and businesses as a result of the COVID-19 crisis.

Once enacted, the filing deadlines would be extended as follows:

  • Deadline for filing the individual income tax returns for 2019 to 31 March 2021
  • Deadline for filing the individual income tax returns and corporate tax returns for 2020 to 30 June 2021
  • Deadline for the Luxembourg resident taxpayers to opt for – via the filing of the form 931 – and pay the 20 percent withholding tax on qualifying interest paid by foreign paying agents (so-called “RELIBI Law”) for 2020 to 30 June 2021
  • Deadline for married couples and individuals in a partnership to opt for the individual taxation for tax year 2020 to 30 June 2021

The Bill does not provide for an extension of the deadline for the 2019 corporate tax returns.  For these returns an administrative tolerance until 31 March 2021 was announced in the press release by the government on 21 December 2020, meaning that no penalties should be imposed if the corporate tax return is filed before that date.

The Bill will now have to follow the usual legislative process before becoming law.

Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.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 endeavour 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.

© 2021 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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