The business press regularly announces the programmed disappearance of the accounting profession under the effect of automation and artificial intelligence. This catastrophic view ignores the reality on the ground: AI does not eliminate the accounting profession, it removes repetitive tasks and enhances human expertise. The accountant becomes the controller and analyst of algorithmic outputs, with a role that evolves towards more strategic advice and the interpretation of complex situations.

Since 1 January 2025, Luxembourg companies wishing to benefit from the investment tax credit for digital or ecological transformation must mandatorily obtain a certificate issued by the Ministry of the Economy via the MyGuichet.lu platform. This new administrative step conditions the application of the preferential 12 percent rate in the tax return. Without this prior document, the tax advantage becomes inapplicable.

Many Luxembourg companies providing services to private individuals in France or Belgium systematically apply Luxembourg VAT due to a lack of awareness of place-of-supply rules. This practice exposes managers to severe tax reassessments. Services linked to a specific property or location must be invoiced with the VAT of the country where they are actually performed, regardless of the service provider’s place of establishment.

Since January 2025, VAT rules for small European businesses have evolved with the SME directive. New exemption thresholds, B2B/B2C distinction, OSS system: this reform simplifies administrative obligations but complicates tax trade-offs. For Luxembourg companies selling in France, Belgium, or Germany, understanding these new rules becomes essential to avoid costly errors and tax assessments.

The Direct Tax Administration has published the ICC 2026 multiplier rates, often perceived as an administrative formality. Strategic error: the ICC constitutes a structural component of Luxembourg corporate tax, not a secondary tax. A municipal rate differential directly impacts your effective tax rate, your net profitability, and your distributable cash flows. Our chartered accountant breaks down the concrete implications and explains how to integrate these rates into your 2026 forecasts to avoid any unpleasant tax surprises.

VAT is a minefield for many Luxembourg SMEs. Incorrect VAT rates applied on invoices, failure to declare intra-Community transactions, or errors in VAT deduction are among the most common pitfalls. These missteps can prove costly in terms of penalties and tax reassessments. In this article, our chartered accountant reviews the five most frequent VAT mistakes made by small businesses in Luxembourg and advises you on how to avoid them effectively.

This guide explains how to complete the annual corporate income tax return (Form 500) in Luxembourg efficiently by leveraging all relevant tax annexes. It details which annex forms to use depending on your company’s situation: from Form 506A for the exemption of subsidiary dividends, to Form 750 to benefit from the IP regime for intellectual property, and Form 800 to obtain an investment tax credit. Practical case studies illustrate how to optimise your tax position in full compliance with the law.

Choosing between Luxembourg accounting standards (LUX GAAP) and international standards (IFRS) is a major strategic decision for any company established in the Grand Duchy. This choice depends on your profile: company size, ownership structure, international expansion plans, and financing needs. Our guide helps you navigate this decision by outlining the key selection criteria and providing tailored recommendations for each situation.