In Luxembourg, companies are required to make advance payments toward certain taxes, including the Net Wealth Tax (NWT) and Corporate Income Taxes, namely Impôt sur le Revenu des Collectivités (IRC) and Impôt Commercial Communal (ICC).
Managing and adjusting these advances correctly is essential to avoid overpayments, penalties, and unexpected year-end liabilities.
Our Tax Advances Adjustment Service ensures that your prepayments are accurately aligned with your projected tax liabilities, keeping your business compliant while optimising cash flow.
Wealth Tax Advances: Prepayments made toward your annual net wealth tax obligation, based on the value of your company’s net assets.
IRC Advances: Quarterly payments toward your corporate income tax.
ICC Advances: Quarterly payments toward the municipal business tax.
The Administration des Contributions Directes (ACD) sets these advances based on previous tax filings, but adjustments may be necessary when your business circumstances change.
Adjustments are often required if:
Your profits are significantly higher or lower than in previous years.
Your net asset value changes, affecting wealth tax liability.
Your business activity expands, contracts, or changes sector.
You want to optimise cash flow and avoid tying up excess funds in overpaid taxes.
Without adjustment, you risk:
Overpayment: tying up capital unnecessarily.
Underpayment: facing interest charges or penalties.
Tax Position Review: assessing current and projected liabilities for NWT, IRC, and ICC.
Advance Payment Recalculation: determining the optimal advance amount based on updated forecasts.
Preparation of Adjustment Requests: completing and submitting formal requests to the ACD for revision.
Compliance Check: ensuring all filings meet Luxembourg tax regulations.
Follow-Up with Authorities: managing correspondence and securing confirmation of adjusted schedules.
Optimised Cash Flow: keep more working capital available throughout the year.
Reduced Year-End Surprises: align advances with actual liabilities.
Regulatory Compliance: meet ACD requirements and avoid penalties.
Strategic Tax Planning: integrate adjustments into a broader fiscal strategy.
Our tax specialists have extensive experience liaising with Luxembourg’s ACD and ensuring that tax advances are managed efficiently for companies of all sizes. We combine precise calculations with strategic insight to protect your business’s financial position.
"Tax advance adjustments are not just an administrative formality, they are a strategic tool for managing liquidity and minimising unnecessary tax exposure."
Next Step: Align your tax advances with your true financial position.
Request your tax advances adjustment consultation today.