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5.6 Luxembourg Annual Closing and RCS Filing Requirements

Annual Closing Process​

Annual closing is mandatory for all Luxembourg businesses. It completes the accounting cycle for the fiscal year and prepares financial statements for filing.

Annual Closing Timeline​

Fiscal Year End: Most businesses use December 31

Key Dates:

  • Year End (Dec 31): Last day of fiscal year
  • Within 7 Months (July 31): Annual accounts must be filed with RCS
  • April 30: Corporate income tax return due
  • February 15: Annual VAT return due (if annual filer)

Annual Closing Checklist​

Pre-Closing (Before Year End):

  • Review all accounts
  • Identify items needing adjustment
  • Plan for year-end adjustments
  • Coordinate with accountant/fiduciaire
  • Prepare inventory count (if applicable)

Year-End Closing:

  • Record all December transactions
  • Make all adjusting entries
  • Review and adjust provisions
  • Calculate depreciation for full year
  • Accrue all expenses and revenues
  • Prepare adjusted trial balance
  • Prepare annual financial statements
  • Prepare closing entries
  • Prepare post-closing trial balance

Post-Closing:

  • Review financial statements
  • Prepare notes to financial statements
  • Have statements reviewed/audited (if required)
  • File with RCS
  • File tax returns
  • Archive all documents

Annual Financial Statements​

Required Components:

  1. Balance Sheet (Bilan)
  2. Income Statement (Compte de RĂ©sultat)
  3. Notes to Financial Statements (Annexe)
  4. Statement of Cash Flows (for larger companies)

Must Follow:

  • PCN 2020 format
  • Luxembourg accounting standards
  • Legal requirements
  • Proper PCN account classifications

RCS Filing Requirements​

What Must Be Filed:

  • Annual accounts (comptes annuels)
  • Balance sheet
  • Income statement
  • Notes to financial statements
  • Management report (for larger companies)
  • Auditor's report (if audit required)

Filing Deadline:

  • 7 months after fiscal year end
  • For December 31 year end: July 31 of following year

Filing Method:

  • Electronic filing via eCDF or RCS portal
  • PDF format required
  • Must be in French, German, or English

Abbreviated vs. Full Financial Statements​

Abbreviated Statements (Comptes Abrégés): Available if business meets ALL criteria:

  • Turnover < €4.4 million
  • Total assets < €2 million
  • Average employees < 50

Full Statements (Comptes Complets): Required if business exceeds any threshold above.

Audit Requirements​

Audit Required If:

  • Balance sheet total > €4.4 million, OR
  • Net turnover > €8.8 million, OR
  • Average employees > 50

Audit Exempt If:

  • Business is below all thresholds
  • Can still choose to have audit voluntarily

Tax Filing Requirements​

Corporate Income Tax:

  • Due: April 30 (for previous year)
  • Based on annual financial statements
  • Must be accurate and complete

VAT:

  • Annual return due: February 15
  • Based on annual VAT calculations
  • Must reconcile with financial statements

Municipal Business Tax:

  • Varies by municipality
  • Generally due: March 31 or April 30
  • Based on annual financial statements

Document Retention​

Required Retention:

  • All accounting records: 10 years
  • Source documents: 10 years
  • Financial statements: 10 years
  • Tax returns: 10 years

Storage:

  • Can be physical or electronic
  • Must be accessible
  • Must be secure

Consequences of Non-Compliance​

Penalties:

  • Late Filing: €250 - €25,000
  • Incomplete Filing: Rejection and penalties
  • Inaccurate Filing: Fines and legal action
  • Tax Penalties: Additional assessments

Other Consequences:

  • Loss of business license
  • Legal action
  • Reputation damage
  • Difficulty obtaining credit

Luxembourg Compliance Note​

Annual closing and RCS filing are mandatory for all Luxembourg businesses. Non-compliance can result in:

  • Significant fines
  • Legal action
  • Business closure
  • Criminal liability (in severe cases)

All businesses must:

  • Complete annual closing properly
  • File annual accounts with RCS within 7 months
  • File tax returns on time
  • Retain documents for 10 years
  • Comply with PCN standards

Think It Through​

Why is it important to complete annual closing properly and file with RCS on time? What are the consequences of non-compliance?