The glossary to understand and take action

Tax advice

Tax advice consists of analysing the tax consequences of a situation and explaining the applicable options and obligations.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

A recommendation must specify the facts, period, conditions and limitations. A stated saving without these elements is not a conclusion that can be used to make a decision.

In your file

What this changes in practice

Useful tax advice starts from documented facts: identity of the parties, activity, flows, contracts, countries concerned and financial year. It distinguishes between the applicable rule, the assumptions used and the choices that remain available. Implementation may require additional steps or evidence. The manager must understand what would change if the activity evolves; a conclusion reached for one transaction does not automatically extend to all future transactions.

A scenario to help you understand

Educational example

A company is preparing a sale abroad. Before issuing its invoice, it has the nature of the service and the customer’s status reviewed, rather than asking only which rate to apply.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Décrire les faits et les pays concernés
  • Demander une conclusion écrite et ses limites
  • Suivre les conditions de mise en œuvre

The practical question

Find out more

Comment préparer une question fiscale utile au conseil ?

Présentez les faits, les pays concernés, les parties, les montants et la chronologie, avec les contrats disponibles. Indiquez aussi les décisions déjà prises et celles qui restent ouvertes. Une réponse fiscale dépend souvent de détails d’organisation ; demander seulement si une dépense est déductible ou si une structure est avantageuse ne suffit pas à une analyse fiable.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Tax supportTax support organises the monitoring of obligations and analysis of the company's tax issues in accordance with the agreed engagement.Intra-Community VATThe term intra-Community VAT concerns the VAT treatment of transactions between Member States of the European Union.Tax residenceTax residence determines the tax connection of an individual or a company under national rules and, where applicable, a treaty.Tax optimisationTax optimisation consists of comparing lawful choices in light of their tax, economic and administrative effects.Transfer pricingTransfer pricing concerns the terms of transactions between related companies and their assessment under the arm's length principle.DAC6 — cross-border arrangementsDAC6 provides for the reporting of certain cross-border arrangements meeting the criteria set out in its legal framework.

Put it into practice

Explore further with our guides

Practical guideBusiness expenses: checking their deductibility in Luxembourg

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.