Luxembourg Companies Face Stricter Financial Record Keeping Requirements

In an effort to align Luxembourg’s corporate accounting practices with international standards, companies operating within the country are now subject to stricter financial record keeping regulations.

Changes to Statutory Annual Accounts

As of January 1st, 2020, all companies in Luxembourg must prepare statutory annual accounts that conform to the country’s legal and regulatory requirements. This obligation applies to all entities as defined by article 75 of the amended law on the register of commerce and companies and the accounting and annual accounts of undertakings.

New Chart of Accounts

A recent decree issued on September 12, 2019, introduced a new chart of accounts for accounting years commencing from January 1st, 2020. According to article 6 of this regulation, companies are required to record their financial transactions in accordance with the new chart of accounts.

• Companies have the option to use an internal chart of accounts if they maintain a conversion to the official Luxembourg chart at their head office.
• The new chart of accounts is applicable for all financial years commencing from January 1st, 2020.

Filing Requirements

Once approved by the Ordinary General Meeting, statutory annual accounts must be filed with the Trade Register within one month. This filing deadline applies six months after the end of each financial year.

• Filing deadline: within one month after approval by the Ordinary General Meeting
• Applicable to: all companies in Luxembourg
• Applies to: six months after the end of each financial year

Expert Guidance

Those seeking guidance on navigating these new requirements can contact Christophe Roeder, Partner and Head of Accounting, or Emmanuelle Ceschin, Director, Tax & Accounting, for expert advice.