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1.6 Luxembourg Context: Accounting Profession, OEC, Fiduciaires, Legal Framework

The Luxembourg Accounting Profession​

Luxembourg has a well-established accounting profession that serves the country's diverse business community, from small local businesses to large international corporations.

Ordre des Experts-Comptables (OEC)​

The Ordre des Experts-Comptables is the professional organization for certified public accountants in Luxembourg.

Role:

  • Regulates the accounting profession
  • Sets professional standards
  • Provides certification and licensing
  • Ensures continuing education
  • Disciplines members for violations

Membership Requirements:

  • University degree in accounting or equivalent
  • Professional training (3-year traineeship)
  • Passing professional exams
  • Adherence to ethical standards
  • Continuing professional education

Services:

  • Professional development
  • Networking opportunities
  • Regulatory updates
  • Professional support

Fiduciaires (Licensed Accounting Firms)​

Fiduciaires are licensed accounting firms that provide services to businesses, particularly SMEs.

Licensing:

  • Must be licensed by the Ministry of Justice
  • Must meet capital requirements
  • Must have professional liability insurance
  • Must follow professional standards

Services Provided:

  • Bookkeeping and accounting
  • Financial statement preparation
  • Tax preparation and filing
  • Business advisory
  • Payroll services
  • Compliance assistance

Regulation:

  • Supervised by the Ministry of Justice
  • Must follow professional standards
  • Subject to periodic inspections

Commercial Code (Code de Commerce)​

The Commercial Code establishes the legal foundation for accounting in Luxembourg:

Key Requirements:

  • All businesses must maintain accounting records
  • Records must follow double-entry bookkeeping
  • Must use PCN (Plan Comptable NormalisĂ©)
  • Must prepare annual accounts
  • Must file with RCS within 7 months of fiscal year end
  • Must retain documents for 10 years

Plan Comptable Normalisé (PCN)​

PCN 2020 is the current version of Luxembourg's standardized chart of accounts.

Purpose:

  • Standardize accounting practices
  • Ensure comparability
  • Facilitate compliance
  • Support regulatory oversight

Structure:

  • 7 account classes
  • Standardized account numbers
  • Defined account descriptions
  • Required for all businesses

Tax Law​

Key Requirements:

  • VAT registration and filing (eCDF)
  • Corporate income tax
  • Municipal business tax
  • Payroll taxes and social charges
  • Proper documentation and record-keeping

Regulatory Bodies​

Commission des Normes Comptables (CNC)​

Role: Sets accounting standards and interprets PCN.

Functions:

  • Develops and updates PCN
  • Provides guidance on accounting standards
  • Interprets complex accounting issues
  • Publishes official guidance

Registre de Commerce et des Sociétés (RCS)​

Role: Maintains official business registry and receives annual account filings.

Functions:

  • Company registration
  • Annual account filing
  • Public access to company information
  • Compliance monitoring

Professional Standards​

Ethical Standards​

All accounting professionals must:

  • Maintain confidentiality
  • Act with integrity
  • Avoid conflicts of interest
  • Provide competent service
  • Maintain professional independence (for auditors)

Quality Assurance​

  • Peer review programs
  • Continuing education requirements
  • Professional liability insurance
  • Disciplinary procedures

Luxembourg Compliance Note​

Businesses in Luxembourg must ensure their accounting complies with:

  1. Commercial Code requirements
  2. PCN 2020 standards
  3. Tax law requirements
  4. Professional standards (if using fiduciaire)

Non-compliance can result in fines, legal action, and business closure.