Luxembourg: 2017 tax reform; double-entry bookkeeping | KPMG Global
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Luxembourg: 2017 tax reform; double-entry bookkeeping required for “liberal” professions

Luxembourg: 2017 tax reform; double-entry bookkeeping

A provision of 2017 tax reform in Luxembourg mandates accounting changes for certain professionals having annual net turnover exceeding €100,000.


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Circular n° 63, Administration des Contributions Directes, (15 September 2017) requires double-entry bookkeeping accounting for “liberal” professionals with annual net profits over €100,000 beginning 1 January 2017. 

Through 31 December 2016, those in the liberal professions—lawyers, notaries, engineers, architects, doctors, dentists, accountants, among others—can still compute taxable profit using a single-entry bookkeeping accounting on a cash basis. After 2016 however, the tax authorities require those liberal professionals with annual net turnover exceeding €100,000 to change to double-entry accounting on an accrual basis. 

The circular grants “independent workers” and certain others a possible delay in applying the new requirements. 


Read an October 2017 report prepared by the KPMG member firm in Luxembourg

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