The glossary to understand and take action

Corporate income tax (IRC)

The term corporate tax commonly refers to the taxation of companies’ profits; in Luxembourg, IRC is one of the taxes to be distinguished.

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

Understand the scope

Definition and points to distinguish

Municipal business tax (ICC) and net wealth tax may also apply depending on the circumstances. Avoid using an isolated rate as a measure of all corporate taxation.

In your file

What this changes in practice

IRC applies to the taxable income of entities within its scope. The accounting result is the starting point, after which tax rules may require adjustments. The financial year, residence status and income concerned must be identified. The calculation alone does not encompass all of the company’s taxation: ICC, net wealth tax and other obligations are dealt with separately. Advance payments must be reconciled with the tax assessment issued.

A scenario to help you understand

Educational example

A company records an expense whose tax deductibility must be verified. Its accounting profit and taxable base may therefore differ, even if the accounts have been properly prepared.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Préparer le passage du résultat comptable au fiscal
  • Vérifier le barème de l’exercice
  • Rapprocher les avances et bulletins

The practical question

Find out more

Le résultat comptable correspond-il directement au bénéfice imposable à l’IRC ?

Le calcul fiscal part des données comptables mais peut demander des réintégrations, déductions et autres ajustements. Conservez une réconciliation lisible entre les deux résultats. Les avances versées doivent ensuite être rapprochées de l’imposition. Cette séparation permet d’expliquer pourquoi la charge estimée, les paiements de l’année et le solde réclamé ne sont pas identiques.

Connecting concepts

Terms to know as well

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

Tax return — Form 500Form 500 refers to the tax return form for entities, with the sections and appendices corresponding to the relevant year and situation.Municipal business taxMunicipal business tax (ICC) is a direct tax linked to commercial profit, the calculation of which notably takes account of a municipal rate.Tax advance paymentProvisional tax payment that is reconciled with the final tax assessment for the relevant period.Corporate taxationCorporate taxation encompasses the taxation and filing rules applicable to a company and its transactions.Tax loss carryforwardA loss determined under tax rules whose deduction in a subsequent period remains possible subject to conditions.Net wealth taxNet wealth tax concerns the taxable assets of entities falling within its scope, in accordance with the applicable valuation and exemption rules.

Put it into practice

Explore further with our guides

Practical guideCorporate tax return: prepare the documents and monitor filingPractical guideCorporate income tax (IRC): understanding advance payments and preparing the settlementPractical guideCorporate net wealth tax: preparing the relevant dataPractical guideTax losses: organising tracking and carryforward supporting documents

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.