Luxembourg Tax Alert 2022-07
Tax fines related to the reporting obligation under the Real Estate Levy
Tax fines related to the reporting obligation under the Real Estate Levy
Luxembourg Tax Authorities have started issuing fines for a fix amount of EUR 10,000 in case the reporting obligation in relation to the Real Estate Levy has not been fulfilled.
For further details on the Real Estate Levy and the respective administrative circular “PRE_IMM n° 1” (PDF, 0.3MB), please refer to our tax alert dated 21st February 2022.
What you should do now?
We highly recommend that opaque Luxembourg investment fund vehicles and their fund managers check if the reporting obligation was fulfilled in due time or, in case of late filing, a reporting has been performed before any late filing penalties apply (the market shows that penalties are fixed 2 to 3 weeks after the reminder for late filing is received from the Luxembourg Tax Authorities).
What are the risks if you miss the deadline/report?
Penalties for default or late filling are in practice fixed for an amount of EUR 10,000 by the Luxembourg Tax Authorities.
We would highly recommend reaching out to your KPMG team, which can assist you in preparing and filing those reports. You may also consider lodging an administrative appeal against the penalty, if you did not hold any Luxembourg real estate in 2020 and 2021 or if there are other reasons to defend against this penalty.
