Luxembourg accounting, tax and legal glossary

A

Administrative support: ConceptsAdministrative support helps prepare and follow up on procedures, documents and deadlines within an agreed scope.
Assets: ConceptsThe assets side of the balance sheet includes resources controlled by the company: fixed assets, inventories, receivables, cash and other items recognised under accounting rules.
Administration of Agricultural Technical Services (ASTA): Administrations and organisationsASTA is involved in the technical aspects of agriculture, including production, means of production and rural engineering within its remit. It is a sector-specific point of contact for agricultural holdings.
Appropriation of profit or loss: ConceptsDecision specifying how the profit or loss for a financial year is to be treated, within legal and statutory limits.
Approval for the transfer of shares: ConceptsApproval required for certain transfers of shares to a new shareholder.
Accident Insurance Association (AAA): Administrations and organisationsThe AAA is Luxembourg's accident insurance body. It is involved in the prevention and compensation of occupational accidents and diseases falling within its legal framework.
Acquisition audit: ConceptsA targeted review of a company before its acquisition, to understand its situation and the risks of the transaction.
Aged trial balance: ConceptsA statement that allocates receivables or payables by age at a given date, in order to organise their monitoring.
A1 Certificate: ProceduresThe A1 certificate confirms the social security legislation applicable to a person in certain situations involving European mobility.
Accounting close: ConceptsThe accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.
Accounting: ConceptsAccounting organises the recording of transactions and the production of information on the company’s financial position and results.
Accountant: ConceptsThe accountant records and monitors transactions, reconciles supporting documents and prepares financial information within the scope of their duties.
Annual accounts: ConceptsAnnual accounts present the entity’s financial position and result at the end of a financial year, together with the documents required under its regime.
ATAD Directives: ConceptsThe ATAD Directives constitute a European framework of measures against certain tax avoidance practices, transposed into national legislation.
Alternative investment fund manager (AIFM / GFIA): ConceptsThe AIFM, referred to as GFIA in French, manages alternative investment funds in accordance with the framework applicable to it.
Anti-money laundering — AML/CFT: ConceptsAnti-money laundering and counter-terrorist financing requires the professionals concerned to comply with due diligence, organisational and cooperation obligations.
Audit trail: ConceptsA set of links and records making it possible to understand a transaction from its source document through to its recording and controls.
Accounting document: ConceptsAn accounting document is a document that substantiates a transaction: an invoice, statement, contract or other evidence appropriate to its nature.
Accounting review: ConceptsAccounting review consists of all checks aimed at examining the consistency and supporting evidence of the prepared accounts.
Articles of association: ConceptsThe articles of association are the company's constitutive rules, covering in particular its purpose, capital and operation.

B

Business creation support: ProceduresBusiness creation support helps project holders organise their choices, documents and procedures before starting up.
Building permit and urban planning: ProceduresA building permit regulates construction, alteration or demolition work in accordance with the applicable rules. For a business, the intended use of the premises must also be compatible with urban planning requirements.
Business permit: ProceduresThe business permit allows the pursuit of activities subject to it, where the conditions relating to the business and its manager are met.
Benefit in kind: ConceptsA benefit in kind is a good or service provided to an employee that may constitute an element of remuneration under the applicable rules.
Balance sheet: ConceptsThe balance sheet presents, at a given date, the company's assets and the resources or obligations financing them.
Business plan: ConceptsThe business plan presents the project, its market, its organisation and its financial forecasts.
Beneficial owner: ConceptsThe beneficial owner is the natural person identified, according to legal criteria, as ultimately owning or controlling an entity or transaction.
Business creation: ConceptsBusiness creation organises the transition from a project to an operational activity, as a sole trader or within a company.
Business waste management: ProceduresBusiness waste management organises its identification, sorting, storage and handling in compliance with the applicable rules. Certain collection or transport operations require authorisation or registration.
Bank reconciliation: ConceptsA check that explains differences between the transactions and balances of a bank account and those recorded in the accounts.
Break-even point: ConceptsThe break-even point is the level of activity at which revenue covers the costs included in the calculation model.
Branch: ConceptsA branch is an establishment attached to a company, to be distinguished from a subsidiary incorporated as a separate company.
Bookkeeping: ConceptsBookkeeping consists of recording transactions, filing their supporting documents and monitoring accounts according to a regular organisation.
Budget variance: ConceptsDifference between an actual value and the budgeted value for the same scope and period.

C

Customs and Excise Administration (ADA): Administrations and organisationsThe Customs and Excise Administration is involved, in particular, in customs formalities and excise duties in Luxembourg. Companies importing or exporting goods must identify the procedures applicable to their flows.
Competition Authority: Administrations and organisationsThe Competition Authority ensures compliance with competition rules in Luxembourg within its area of competence. In particular, it investigates and sanctions anti-competitive practices.
Credit note: ConceptsA document that reduces or cancels all or part of an invoice by identifying the transaction and the correction.
CSSF: Administrations and organisationsThe Commission de surveillance du secteur financier (CSSF) is a Luxembourg supervisory authority within the scope assigned to it by law.
Cessation of activity: ProceduresCessation of activity ends operations, but does not automatically extinguish all of the company's obligations. The steps depend on the status, employees, taxes, contracts and existing registrations.
Co-financing of in-company training: ProceduresTraining co-financing supports continuing vocational training expenses that meet the conditions of the Luxembourg scheme. It is based on an application documenting eligible actions and costs.
Consumer: ConceptsA consumer is a natural person acting for purposes outside their professional activity, within the applicable definition.
Company formation: ConceptsCompany formation is the legal transaction that establishes the company according to the rules applicable to its form.
Collective labour agreement: ConceptsA collective agreement setting out working conditions for employees and employers falling within its scope of application.
Company formation: ConceptsCompany formation involves setting up a corporate structure according to the chosen legal form.
Capital dilution: ConceptsDilution refers to the decrease in a shareholder's relative interest when a capital transaction changes the allocation of securities.
Consumer Protection Directorate: Administrations and organisationsThe Consumer Protection Directorate is involved in consumer protection in Luxembourg. Its resources help professionals understand the rules applicable to their relationships with private individuals.
Civil Aviation Directorate (DAC): Administrations and organisationsThe DAC is the Luxembourg authority competent for aviation safety and security. Its rules concern sector operators and certain companies using aircraft, including drones.
Customs declaration: ProceduresA customs declaration provides information on the goods and the procedure requested in an operation subject to customs. It is based in particular on their nature, value, origin and the parties to the transaction.
Chartered accountant: ConceptsThe chartered accountant practises a regulated profession, with assignments relating in particular to accounting and advisory services within the authorised framework.
Corporate taxation: ConceptsCorporate taxation encompasses the taxation and filing rules applicable to a company and its transactions.
Corporate income tax (IRC): ConceptsThe term corporate tax commonly refers to the taxation of companies’ profits; in Luxembourg, IRC is one of the taxes to be distinguished.
Continuation of salary: ConceptsContinuation of remuneration by the employer during an absence under the conditions provided for by the applicable rules.
Contribution margin: ConceptsDifference between sales and costs that vary with the level of activity, under the management model used.
Capital gain: ConceptsA capital gain is a gain determined in a transaction by comparison with a reference value under the relevant rules.
Corporate secretarial services: ConceptsCorporate secretarial services organise the documents and formalities linked to the life of a company: decisions, registers and filings according to its regime.
Civil partnership: ConceptsA civil partnership is a corporate structure intended for a civil purpose, whose rules differ from those of commercial capital companies.
Cut-off: ConceptsPrinciple requiring expenses and income to be allocated to the financial year to which they relate, independently of payment alone.

D

Direct Tax Administration (ACD): Administrations and organisationsThe Direct Tax Administration (ACD) is responsible for direct taxes falling within its remit.
Depreciation: ConceptsDepreciation allocates the depreciable amount of an asset over its estimated useful life, in accordance with the applicable rules.
Domiciliation agreement: ConceptsA domiciliation agreement is the written contract defining the relationship between the domiciled company and the authorised domiciliation professional.
Doubtful receivable: ConceptsA receivable whose recovery involves uncertainty that must be examined and documented.
DAC6 — cross-border arrangements: ConceptsDAC6 provides for the reporting of certain cross-border arrangements meeting the criteria set out in its legal framework.
Directorate of Health: Administrations and organisationsThe Directorate of Health operates in the field of public health within its remit. Companies in certain sectors must check the health requirements specific to their activities and products.
Directorate-General for Immigration: Administrations and organisationsThe Directorate-General for Immigration of the Ministry of Home Affairs handles residence and work procedures falling within its remit. It is involved in particular in certain professional projects involving third-country nationals.
Dividend: ConceptsA dividend is a distribution decided for the benefit of partners or shareholders under the conditions applicable to the company.
Domiciliation: ConceptsCompany domiciliation organises, in situations provided for by law, the establishment of a registered office with an authorised third party and the agreed services.
Depositary: ConceptsParty responsible for asset safekeeping, oversight and cash monitoring functions for a fund, in accordance with its applicable framework.
Data minimisation: ConceptsA principle consisting of limiting the personal data used to what is necessary for the intended purpose.
Durable medium: ConceptsA means enabling information sent to its recipient to be stored and subsequently consulted without alteration for an appropriate period.

E

Environment Agency (AEV): Administrations and organisationsThe AEV is involved in environmental protection and procedures within its remit. Businesses may be concerned by classified installations, waste, emissions or other obligations linked to their activity.
Employment Development Agency (ADEM): Administrations and organisationsADEM is Luxembourg’s public employment service. It supports employers in particular with recruitment and the declaration of job vacancies, with services and measures subject to their own conditions.
Equity: ConceptsEquity consists of accounting resources including, in particular, capital, reserves and results according to the applicable format.
Economic Committee: Administrations and organisationsThe Economic Committee is involved in schemes relating to economic conditions and employment, in particular the examination of short-time working applications under the applicable framework.
Employment contract: ConceptsThe employment contract governs an employment relationship, with the respective obligations of the employer and employee within the applicable legal framework.
Engagement letter: ConceptsThe engagement letter formalises the services agreed between a professional and their client, together with the conditions for their performance.
Employers’ Mutual Insurance Scheme (MDE): Administrations and organisationsThe Employers’ Mutual Insurance Scheme contributes to covering the cost of continued salary payments in the event of incapacity for work, under the applicable conditions. It is distinct from the CNS and the CCSS, even though their procedures are connected.
Expense claim: ConceptsStatement through which a person submits business expenses incurred and the supporting documents required for their processing.
EORI number: ProceduresThe EORI number identifies an economic operator in dealings with the customs authorities of the European Union. It is useful for companies carrying out customs operations, in particular with third countries.
Electronic Compendium of Companies and Associations (RESA): ConceptsThe Electronic Compendium of Companies and Associations (RESA) ensures the legal publication of deeds and particulars subject to publication therein.
European Company (SE): ConceptsThe European Company is a corporate form organised under a European framework supplemented by applicable national provisions.
Economic substance: ConceptsEconomic substance refers to the actual elements of organisation, resources and decision-making assessed in the analysis of an activity or structure.
eCDF: ProcedureseCDF is the Luxembourg platform for preparing, validating and submitting financial data in accordance with the available procedures.

F

Functional analysis: ConceptsAn examination of the activities, resources and risks of the parties to a transaction, in particular to prepare a transfer pricing analysis.
Financial Intelligence Unit (CRF): Administrations and organisationsThe CRF is Luxembourg’s financial intelligence unit within the framework for combating money laundering and terrorist financing. Obliged professionals must be familiar with the procedures arising from their obligations.
Filing of annual accounts: ProceduresThe filing of annual accounts is the formality of submitting the required accounting documents to the register for the entities concerned. It takes place within a process that also includes their preparation and approval.
Financial year: ConceptsThe financial year is the period over which a company prepares its accounts and determines its result.
FAIA — computerised audit file: ConceptsAccounting data format used for the purposes of computerised audits by the AED.
Fiduciary firm: ConceptsA fiduciary firm is a service provider offering, depending on its organisation and authorisations, accounting, tax, administrative or corporate services.
Fixed asset: ConceptsAn item intended for long-term use in the business, whose classification and measurement must be assessed under the applicable accounting framework.
Financial forecast: ConceptsThe financial forecast translates the project's assumptions into expected results, cash flows and financing needs.
Family wealth management company (SPF): ConceptsThe family wealth management company (SPF) is a wealth management vehicle subject to a specific framework for eligible investors and activities.

G

General ledger: ConceptsThe general ledger presents the movements recorded in each accounting account, together with their references and amounts.
General Inspectorate of Social Security (IGSS): Administrations and organisationsThe IGSS carries out analysis, monitoring and support tasks in the field of social security. Its work and resources shed light on the functioning and development of the Luxembourg system.
GDPR — protection of personal data: ConceptsThe General Data Protection Regulation governs the processing of personal data within its scope of application.

H

House of Entrepreneurship: Administrations and organisationsThe House of Entrepreneurship is a support point for entrepreneurs in Luxembourg. It helps clarify a project and provides guidance through business creation and development procedures.

I

Insurance Commission (CAA): Administrations and organisationsThe CAA is the supervisory authority for the insurance sector in Luxembourg. Its scope includes, in particular, insurers, reinsurers and intermediaries covered by the applicable framework.
Income statement: ConceptsThe income statement, also called the profit and loss account in Luxembourg accounts, matches income and expenses for a period.
Indirect control: ConceptsThe ability to exercise control over an entity through one or more intermediate structures or relevant rights.
Investment aid application: ProceduresAn investment aid application presents a project and its expenditure under a specific public scheme. Eligibility depends on the company, the project, the costs and the conditions of the scheme.
Impairment: ConceptsA value adjustment considered when an asset has suffered a loss in value that must be taken into account under the applicable rules.
Incentive effect of aid: ConceptsA condition intended to establish that public support plays a role in the decision to carry out a project under the rules of the scheme.
ILNAS — standardisation and product safety: Administrations and organisationsILNAS is the Luxembourg administration responsible for standardisation, accreditation, and product and service safety and quality missions. Its role is particularly relevant to businesses that place products on the market.
INFPC — continuing vocational training: Administrations and organisationsThe INFPC informs and supports continuing training stakeholders in Luxembourg. For companies, its resources help organise training and understand the relevant co-financing schemes.
Institut des réviseurs d’entreprises (IRE): Administrations and organisationsThe Institut des réviseurs d’entreprises (IRE) is the professional body for statutory auditors in Luxembourg.
Intrastat: ProceduresA system for the statistical collection of trade in goods between Member States of the European Union.
Intellectual property licence: ConceptsA licence authorises the use of intellectual property rights under agreed terms, without necessarily involving their transfer.
Intra-Community supply: ConceptsA supply of goods involving movement between two Member States of the European Union, the VAT treatment of which depends on the conditions of the transaction.
Intellectual property: ConceptsIntellectual property encompasses rights that protect certain creations, inventions and signs under their respective regimes.
Inventory: ConceptsGoods tracked in the operating cycle, particularly for sale, processing or consumption in production.
Intra-Community VAT: ConceptsThe term intra-Community VAT concerns the VAT treatment of transactions between Member States of the European Union.

J

Joint Social Security Centre (CCSS): Administrations and organisationsThe Joint Social Security Centre (CCSS) notably manages registrations and the collection of social security contributions within its remit.

K

KYC — know your customer: ConceptsKYC covers customer due diligence procedures used in particular as part of anti-money laundering due diligence obligations.

L

Land Registry and Topography Administration (ACT): Administrations and organisationsThe ACT is involved in Luxembourg’s cadastral and topographical information. Data relating to parcels and plans help businesses document a property project or operating site.
Luxembourg Veterinary and Food Administration (ALVA): Administrations and organisationsALVA brings together food chain control, animal health and animal welfare competencies. It is an important contact for businesses producing, processing or marketing foodstuffs.
Liquidation surplus: ConceptsA surplus generated at the end of a liquidation, after settlement of obligations and taking account of the repayment of contributions in accordance with the applicable rules.
Luxembourg Chamber of Commerce: Administrations and organisationsThe Chamber of Commerce represents businesses within its remit and offers information, training and support services. It is a professional point of contact, distinct from a tax authority.
Luxembourg Chamber of Skilled Trades and Crafts: Administrations and organisationsThe Chamber of Skilled Trades and Crafts represents craft businesses and supports them with their professional matters. It notably provides information and services related to business creation, management and skills in the craft sector.
Legal form: ConceptsThe legal form defines the legal framework for the activity: organisation, liability and relations between participants.
Labour and Mines Inspectorate (ITM): Administrations and organisationsThe Labour and Mines Inspectorate (ITM) is involved, in particular, in monitoring labour law and occupational health and safety.
Luxembourg Institute of Regulation (ILR): Administrations and organisationsThe ILR carries out regulatory tasks in several sectors, including electronic communications, energy, postal services and certain transport services, as well as cybersecurity responsibilities.
Leasing: ConceptsLeasing arranges for an asset to be made available in exchange for payments under the terms of a financing or rental agreement.
Lux GAAP: ConceptsLux GAAP refers to the Luxembourg accounting rules applicable to the preparation of accounts within the national framework.
LuxTrust — authentication and signature: ProceduresLuxTrust provides means of identification, authentication and electronic signature in accordance with its products and services.
Luxembourg Business Registers (LBR): Administrations and organisationsLuxembourg Business Registers manages, in particular, the RCS, RESA and RBE. These tools serve different functions: identification and filings, publication of instruments, and declaration of beneficial owners.
Luxinnovation: Administrations and organisationsLuxinnovation is the national innovation agency. It supports companies in their innovation and development projects and directs them towards relevant programmes, partners and schemes.
Liabilities: ConceptsThe liabilities side of the balance sheet presents the company's sources of financing and obligations, including equity, provisions and debts according to the applicable format.

M

Municipal administration — business procedures: Administrations and organisationsThe municipal administration is a local point of contact for certain procedures related to premises, works and the use of a business site. The relevant rules and services must be checked with the municipality concerned.
MyGuichet.lu professional space: ProceduresA collaborative space enabling a company, self-employed person or association to manage certain administrative procedures and information.
Manager: ConceptsThe manager performs the management and representation functions assigned to them within the company.
Municipal business tax: ConceptsMunicipal business tax (ICC) is a direct tax linked to commercial profit, the calculation of which notably takes account of a municipal rate.
Ministry of the Economy — business procedures: Administrations and organisationsThe Ministry of the Economy is involved in several business procedures, including business permits and various aid schemes. The competent department depends on the exact purpose of the application.
MyGuichet.lu: ProceduresMyGuichet.lu is the electronic administrative procedures platform that enables available procedures to be completed in a personal or professional space.
Multiple activity: ConceptsPursuit of several professional activities, particularly in several countries for the assessment of social security.
Minutes of a meeting: ConceptsThe minutes record the decisions made and the required information on the occasion of a company meeting.
Multisectoral Occupational Health Service (STM): Administrations and organisationsThe STM supports affiliated companies in occupational health, medical surveillance and the prevention of occupational risks. It is an occupational health service, distinct from health insurance.

N

Nature and Forests Administration (ANF): Administrations and organisationsThe ANF is involved in nature protection and forest management in Luxembourg. A business project affecting natural areas may require assessment under nature protection rules.
National Health Fund (CNS): Administrations and organisationsThe CNS is involved in health and maternity insurance in Luxembourg. For employers, it is notably a contact point in monitoring incapacity for work and benefits falling within its remit.
National Commission for Data Protection (CNPD): Administrations and organisationsThe CNPD is Luxembourg's data protection supervisory authority. It provides information, carries out supervision and, in particular, handles complaints within its area of competence.
Net wealth tax: ConceptsNet wealth tax concerns the taxable assets of entities falling within its scope, in accordance with the applicable valuation and exemption rules.
Notification of a personal data breach: ProceduresA data breach may affect the confidentiality, integrity or availability of data. The controller must assess the incident and the notification obligations provided for by the GDPR.
National identification number — 13-digit identification number: ConceptsThe national identification number of a natural person in Luxembourg comprises 13 digits and enables identification in the relevant procedures.

O

Operating permit — commodo/incommodo: ProceduresThe classified establishments regime governs certain facilities and activities in order to protect, in particular, the environment, workers and neighbouring residents. The process depends on the establishment's classification.
Occupational accident declaration: ProceduresThe accident declaration communicates to the competent body the circumstances of an event that may fall under accident insurance. It enables the case to be assessed without prejudging its recognition.
Operational declaration with the CCSS: ProceduresA procedure enabling a company to register as an employer with the CCSS.
OCR — optical character recognition: ConceptsOCR enables a tool to recognise characters in a scanned document in order to extract text or data from it.
OEC: Administrations and organisationsThe Ordre des experts-comptables (OEC) is Luxembourg's professional body for the chartered accountancy profession.
OSS — VAT One Stop Shop: ConceptsA scheme allowing VAT on certain covered transactions carried out for consumers in the European Union to be declared and paid in one Member State.
Office du Ducroire (ODL): Administrations and organisationsThe Office du Ducroire supports the international development of Luxembourg businesses, notably through insurance solutions and support for promotion abroad, subject to its conditions.

P

Purchase invoice: ConceptsA purchase invoice describes the goods or services invoiced to the company by a supplier.
Professional repute: ConceptsA condition for access to or exercise of a profession or activity, assessed according to the rules of that profession or activity and separate from technical skills.
Physical inventory: ConceptsAn operation to verify and count assets on a given date, with identified references, units and persons responsible.
Peppol: ConceptsNetwork enabling the exchange of structured documents, including electronic invoices, between participants.
Pillar 2 — effective minimum taxation: ConceptsPillar 2 establishes effective minimum taxation for groups within its scope, according to specific calculation and reporting rules.
Professional of the financial sector (PSF): ConceptsA professional of the financial sector (PSF) is subject to a regulated status corresponding to a category of activities and the required authorisations.
Parent-subsidiary regime: ConceptsSubject to conditions, the parent-subsidiary regime provides for exemption treatment of certain income and shareholdings between companies.
Public limited company (SA): ConceptsA public limited company (SA) is a capital company organised around shares and governing bodies defined by its legal framework and articles of association.
Processor within the meaning of the GDPR: ConceptsThe processor processes personal data on behalf of a controller, within the framework of the applicable instructions and conditions.
Permanent establishment: ConceptsA permanent establishment is a concept linking an activity to a territory, assessed under the relevant tax framework.

R

Registration Duties, Estates and VAT Administration (AED): Administrations and organisationsThe Registration Duties, Estates and VAT Administration (AED) manages, in particular, VAT and other matters falling within its remit.
Railways Administration (ACF): Administrations and organisationsThe ACF operates within the scope of railway safety and regulation in Luxembourg, in accordance with its remit. Companies in the sector must distinguish these obligations from those of an ordinary transport user.
Roads and Bridges Administration: Administrations and organisationsThe Roads and Bridges Administration is involved in road infrastructure within its remit. A business project affecting State roads may require a specific procedure.
Right of withdrawal: ConceptsThe right of withdrawal makes it possible, in situations provided for by law, to withdraw from a contract within a specified period and according to specified procedures.
Right to deduct VAT: ConceptsThe right to deduct allows, subject to conditions, the deduction of input VAT incurred in connection with transactions giving rise to that right.
Registration of a food establishment: ProceduresRegistration makes it possible to identify food-chain establishments and activities with the competent authority. It concerns operators falling within the scope of the procedure, according to their activity.
Reserved alternative investment fund (RAIF / FIAR): ConceptsThe RAIF, or FIAR in French, is a fund governed by a specific Luxembourg regime, with conditions specific to investors and its organisation.
Registration: ProceduresRegistration enters a company or entity in the competent register according to its status and the applicable rules.
Reporting Office: Administrations and organisationsThe Reporting Office provides information and guidance in connection with the protection of persons reporting breaches of law. Its role forms part of Luxembourg's whistleblower protection framework.
RBE: ConceptsThe Register of Beneficial Owners (RBE) receives information on natural persons identified as beneficial owners of the entities concerned.
RCS: ConceptsThe Trade and Companies Register (RCS), managed by Luxembourg Business Registers, centralises registrations and filings for the persons and entities concerned.
Reversibility of accounting data: ConceptsReversibility refers to the ability to retrieve the documents and data needed to continue management with another tool or service provider.
Rural Economy Service (SER): Administrations and organisationsThe SER analyses the economic and social situation of agriculture and viticulture and advises operators on the management and direction of their activities, within the scope of its duties.
Registered office: ConceptsThe registered office is a company's statutory address, linked to its legal organisation.

S

Self-employed contribution assessment base: ConceptsProfessional income base used to calculate the self-employed person's social security contributions.
Shareholder: ConceptsA shareholder holds rights in a company by virtue of their participation in the capital or under the rules of the relevant legal form.
Share capital: ConceptsShare capital is an amount set out in the articles of association based on contributions recognised as capital, then amended in accordance with the applicable procedures.
Short-time working: ProceduresShort-time working makes it possible, under the conditions of a specific scheme, to respond to a temporary reduction in activity. Its use requires a procedure and compliance with the applicable decisions and obligations.
Simplified accounting for a small ASBL: ConceptsAccounting that records the income and expenditure of an association falling within the legal category of small associations.
Shareholder current account: ConceptsThe shareholder current account records sums due between the company and a shareholder according to the relevant transactions and agreements.
Sole proprietorship: ConceptsA sole proprietorship allows a person to carry out an activity in their own name, without forming a separate company.
Sales invoice: ConceptsA sales invoice describes the transaction invoiced to a customer, with the applicable information and VAT treatment.
Standard chart of accounts (PCN): ConceptsThe Standard Chart of Accounts (PCN) is the Luxembourg account nomenclature applicable to companies falling within its scope.
SARL: ConceptsAn SARL is a private limited liability company whose organisation and shareholders’ rights are governed by law and the articles of association.
SARL-S: ConceptsThe SARL-S is a simplified variant of the SARL, subject to specific conditions concerning, in particular, the shareholders, the activity and the capital.
SECUline: ProceduresSECUline is an electronic social-data exchange system used in dealings with the CCSS in accordance with the available procedures.
SOPARFI: ConceptsSOPARFI commonly refers to a financial holding company subject to ordinary law, incorporated in a legal form such as an SARL or an SA.
STATEC — statistics and economic studies: Administrations and organisationsSTATEC produces statistics and economic studies on Luxembourg. Companies use its data to understand their environment and may be concerned by its surveys or statistical declarations.
Social minimum wage: ConceptsThe social minimum wage is a statutory remuneration benchmark whose applicable amount varies, in particular, according to age, qualification and period.
Société Nationale de Crédit et d’Investissement (SNCI): Administrations and organisationsThe SNCI is a Luxembourg public banking institution that facilitates business financing, particularly for SMEs. Its instruments are subject to specific conditions and form part of a financing project.
Special limited partnership (SCSp): ConceptsThe special limited partnership (SCSp) is a Luxembourg partnership without separate legal personality.

T

Tax support: ConceptsTax support organises the monitoring of obligations and analysis of the company's tax issues in accordance with the agreed engagement.
Tax advance payment: ConceptsProvisional tax payment that is reconciled with the final tax assessment for the relevant period.
Trial balance: ConceptsThe trial balance summarises accounts, their movements and their balances over a defined period.
Tax advice: ConceptsTax advice consists of analysing the tax consequences of a situation and explaining the applicable options and obligations.
Tax return: ProceduresA tax return provides the administration with the information needed to assess or verify a tax for a given person and period.
Tax return — Form 500: ConceptsForm 500 refers to the tax return form for entities, with the sections and appendices corresponding to the relevant year and situation.
Tax withholding certificate: ConceptsThe tax withholding certificate provides the information to be used to calculate withholdings on the relevant remuneration in Luxembourg.
Tax optimisation: ConceptsTax optimisation consists of comparing lawful choices in light of their tax, economic and administrative effects.
Tax loss carryforward: ConceptsA loss determined under tax rules whose deduction in a subsequent period remains possible subject to conditions.
Transfer pricing: ConceptsTransfer pricing concerns the terms of transactions between related companies and their assessment under the arm's length principle.
Tax residence: ConceptsTax residence determines the tax connection of an individual or a company under national rules and, where applicable, a treaty.

U

Update of the RBE: ProceduresAn update of the RBE updates information on beneficial owners when the declared situation changes. It is based on identifying the natural persons concerned under the applicable rules.

V

VAT taxable person: ConceptsA VAT taxable person independently carries out an economic activity subject to VAT rules.
VAT reverse charge: ConceptsVAT reverse charge refers to a mechanism under which the customer is liable for the tax according to the conditions applicable to the transaction.
VAT return: ProceduresThe VAT return reports transactions and tax amounts to the AED according to the regime assigned to the taxable person.
Vacancy declaration: ProceduresThe vacancy declaration informs ADEM of the employer's recruitment need. It describes the position and enables exchanges with the employment service to be organised.
VAT exemption scheme: ConceptsA scheme subject to conditions that exempts covered transactions from charging VAT, without granting the right to deduct the corresponding VAT on purchases.
Voluntary liquidation of a company: ProceduresVoluntary liquidation organises the winding-up of a company, the realisation of its assets and the settlement of its obligations in accordance with the applicable procedure.
VAT number: ConceptsThe VAT number identifies a person for their value added tax obligations within the relevant system.
VAT deduction pro rata: ConceptsA proportion used, under the applicable conditions, to determine the portion of VAT deductible on expenses common to transactions that do and do not give rise to this right.
VAT: ConceptsValue added tax (VAT) is a consumption tax applied to transactions falling within its scope according to their own rules.
VIES: ConceptsA European Commission tool that queries national information to verify a VAT number in European transactions.

W

Water Management Administration (AGE): Administrations and organisationsThe AGE is involved in water management and protection. Certain works, abstractions, discharges or business developments may be subject to water-related authorisation.
Work and residence authorisation: ProceduresThe right to work and reside in Luxembourg depends on the person's nationality and circumstances. Certain activities carried out by third-country nationals require an appropriate authorisation or permit.
Working capital requirement (WCR): ConceptsThe working capital requirement (WCR) measures the financing absorbed by the operating cycle, notably inventory and receivables, less operating liabilities.
Wage indexation: ConceptsIndexation adjusts remuneration according to the legal mechanism of the sliding scale and the corresponding effective dates.
Wine-growing and Viticulture Institute (IVV): Administrations and organisationsThe IVV is the administrative and technical contact for the wine-growing sector within its remit. The operations concerned must identify the procedures specific to wine production and marketing.
Withholding tax on dividends: ConceptsTax withheld when a dividend is made available and declared by the debtor company in accordance with the applicable rules.

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