The glossary to understand and take action

Net wealth tax

Net wealth tax concerns the taxable assets of entities falling within its scope, in accordance with the applicable valuation and exemption rules.

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

Understand the scope

Definition and points to distinguish

It is distinct from profit taxation. Any minimum tax and reductions require an analysis of the period and the entity; no former tax scale should be used without verification.

In your file

What this changes in practice

Net wealth tax is governed by asset valuation rules distinct from those for profit taxation. The entity, valuation date, relevant assets and liabilities, and applicable special regimes must be identified. The minimum tax and possible reductions require separate review. A loss in the profit and loss account therefore does not, on its own, establish that this tax does not apply.

A scenario to help you understand

Educational example

A company makes no profit during a financial year but holds significant assets. It checks its net wealth tax obligations rather than using its annual result as the sole criterion.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Identifier la date et la base d’évaluation
  • Examiner le régime minimum applicable
  • Documenter toute réduction demandée

The practical question

Find out more

L’impôt sur la fortune se calcule-t-il comme l’impôt sur le bénéfice ?

Il répond à des règles et une base distinctes. Une société doit vérifier son assujettissement, les éléments retenus et le régime éventuellement applicable à sa situation. Ne déduisez pas l’impôt de la seule rentabilité de l’exercice. Le dossier doit distinguer les calculs de chaque impôt et conserver les éléments expliquant l’évaluation retenue.

Connecting concepts

Terms to know as well

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

AssetsThe assets side of the balance sheet includes resources controlled by the company: fixed assets, inventories, receivables, cash and other items recognised under accounting rules.LiabilitiesThe 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.Direct Tax Administration (ACD)The Direct Tax Administration (ACD) is responsible for direct taxes falling within its remit.Corporate taxationCorporate taxation encompasses the taxation and filing rules applicable to a company and its transactions.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.Tax returnA tax return provides the administration with the information needed to assess or verify a tax for a given person and period.

Put it into practice

Explore further with our guides

Practical guideCorporate tax return: prepare the documents and monitor filingPractical guideCorporate net wealth tax: preparing the relevant data

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.