In Luxembourg, there is no exact amount of penalty for late tax returns
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According to the Budget Law of 23 December 2022, the deadline for filing tax returns is 31 December of the year following the tax period. If this deadline is violated, taxpayers may face penalties, including fines and penalties. However, the penalty is decided on an individual basis, based on the circumstances of each case.
Tax inspectors are required to consider a number of factors, such as the severity of the violation, recurrence, the taxpayer's financial situation and intent. The law requires that such decisions be based on the principles of fairness and reasonableness, as set out in §2 of the Tax Adjustment Act. It also provides for the possibility of reducing or cancelling penalties if the delay in filing a return is found to be justified.
The maximum amount of penalties is limited by law, which excludes arbitrary penalties. Taxpayers have the right to appeal against decisions of the inspectorate. The complaint is first filed with the director of the tax department, and in case of disagreement with its decision - with the administrative court.
