The glossary to understand and take action

Capital gain

A capital gain is a gain determined in a transaction by comparison with a reference value under the relevant rules.

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

Understand the scope

Definition and points to distinguish

Its accounting calculation and tax treatment may differ. The nature of the asset, price, costs, history and any exemption conditions must be documented; an estimated increase in value is not a completed sale.

In your file

What this changes in practice

A capital gain reflects a positive difference on the disposal of an asset according to the relevant reference value. The accounting calculation and tax calculation may differ. The nature of the asset, its holding period, depreciation and the transferor's status influence the analysis. A sale price higher than the purchase price is therefore not sufficient to determine the tax due.

A scenario to help you understand

Educational example

A company sells a fully depreciated machine. It compares the disposal price with its carrying amount and then examines the applicable tax rules.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Identifier la valeur de référence
  • Documenter les frais et ajustements
  • Séparer résultat comptable et fiscal

The practical question

Find out more

Comment comprendre une plus-value sur une immobilisation amortie ?

Dans un exemple comptable fictif, un équipement dont la valeur nette comptable est de 8 000 euros est vendu 10 000 euros hors effets accessoires : l’écart est de 2 000 euros. Le résultat fiscal peut demander d’autres analyses. Le prix d’achat initial ne suffit donc pas pour calculer le résultat de cession après plusieurs années d’utilisation.

Connecting concepts

Terms to know as well

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

Fixed assetAn item intended for long-term use in the business, whose classification and measurement must be assessed under the applicable accounting framework.DepreciationDepreciation allocates the depreciable amount of an asset over its estimated useful life, in accordance with the applicable rules.Corporate taxationCorporate taxation encompasses the taxation and filing rules applicable to a company and its transactions.Parent-subsidiary regimeSubject to conditions, the parent-subsidiary regime provides for exemption treatment of certain income and shareholdings between companies.Permanent establishmentA permanent establishment is a concept linking an activity to a territory, assessed under the relevant tax framework.Working capital requirement (WCR)The working capital requirement (WCR) measures the financing absorbed by the operating cycle, notably inventory and receivables, less operating liabilities.

Put it into practice

Explore further with our guides

Practical guideReal estate investment: preparing the accounting and tax filePractical guideParent-subsidiary regime in Luxembourg: conditions to review

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.