Approval of the annual accounts of SAs and SARLs in Luxembourg

Published on Feb 15, 2024

The annual accounts of capital companies must be approved by the shareholders or members, as the case may be (in accordance with Articles 450-8 and 710-23 of the amended Act of 10 August 1915 on commercial companies). For SAs, the obligation to convene the meeting is attributed to the board ...

Filing of the annual financial statements

Published on Feb 15, 2024

Businesses must file their accounts (PCN) with the ECDF platform to make them accessible to Luxembourg administrations. Additionally, some companies must also file their annual accounts with the Luxembourg Business Register to make them accessible to the public. The main entities concerned ...

Accounting and tax provisions in Luxembourg

Published on Mar 28, 2022

The accounting and tax provision is defined as the recognition of a decrease in the value of an asset (provision for impairment of assets) or an increase in the liability due in the more or less long term (provision for risks or expenses).

Currencies in Luxembourg accounting

Published on Mar 7, 2022

1. Valuation of foreign currency receivables and payables on entry into the accounts 1.1. Recording a foreign currency transaction in the absence of a currency hedging instrument Transactions in foreign currency are to be recorded in the currency in which the accounts are kept (in principle ...

Leasing in Luxembourg

Published on Feb 21, 2022

The contract of «leasing», a recent concept, generalized in the 1960s (its invention dates from an American law «lend-lease» of 11/03/1941) is based on a differentiation of the legal and economic ownership of a property.

Double-entry accounting

Published on Dec 16, 2021

Since 1 January 2017, the liberal professions must keep partly double accounts from the moment their annual turnover exceeds EUR 100,000.

Accounting on a net asset basis

Published on Nov 3, 2021

If the company knows that it will be in liquidation and even if the process has not yet begun, it must record its accounting transactions on a net-asset basis (if the company knows that it will not or will not be able to continue its activity).

Benefits-in-kind

Published on Jan 18, 2021

The assessment and nature of the tax income of benefits in kind granted to employees and shareholders and partners (whether or not they are employees) and in particular the benefits represented by the provision of service or a company car (the latter distinction does not exist in Luxembourg) ...

Cash accounting or accrual accounting?

Published on Jan 13, 2021

There are two main accounting systems: The accrual accounting system: income and expenditure are entered in the accounts as soon as they are certain in principle and determined in amount, even if they have not yet been paid; The cash accounting system: income is recorded when it is ...

Accounting in the liquidation of a company

Published on Jun 29, 2015

All good things come to an end! Even companies. Companies can end for various reasons, as a result of bankruptcy, for example, or for more positive reasons such as their dissolution to distribute the profits accumulated over time. There are two ways to dissolve a Luxembourg company: ...