Luxembourg: Draft legislation to extend tax return deadlines (COVID-19)
Luxembourg: Tax return deadlines
Draft legislation (Bill 7746) that would extend certain deadlines for individual and corporate tax returns has been filed in the Chamber of Deputies.
The proposed tax return deadline extensions are intended to provide relief for individuals and businesses in response to the coronavirus (COVID-19) pandemic.
If enacted, the filing deadlines would be extended as follows:
- Deadline for filing the individual income tax returns for 2019—extended to 31 March 2021
- Deadline for filing the individual income tax returns and corporate tax returns for 2020—extended to 30 June 2021
- Deadline for the Luxembourg resident taxpayers to file form 931 and elect to pay the 20% withholding tax on qualifying interest paid by foreign paying agents for 2020—extended to 30 June 2021
- Deadline for married couples and individuals in a partnership to elect for individual taxation for tax year 2020—extended to 30 June 2021
The bill does not provide for an extension of the deadline for filing corporate tax returns for 2019. For these returns, an administrative tolerance—until 31 March 2021—was announced by the government on 21 December 2020, so that no penalties would be imposed if the corporate tax return is filed before 31 March 2021.
The bill is subject to completion of the legislative process before becoming law.
Read a January 2021 report prepared by the KPMG member firm in Luxembourg
© 2022 KPMG LLP, a Delaware limited liability partnership 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.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. 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 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.