Luxembourg extends deadlines to support businesses during COVID-19

4 September 2020 - In order to support businesses during the ongoing COVID-19 pandemic, the Luxembourg legislator has enacted new laws extending certain statutory deadlines.

On 7th May 2020, a law extending the deadlines prescribed in various financial sector laws was passed, introducing a three month extension of the deadlines for filing of periodic accounts and reports that are applicable to entities in relevant sectors.

Another important piece of legislation was adopted by the Luxembourg Parliament on 22nd May 2020. The law is applicable to commercial entities operating in Luxembourg and it introduces an extension of three months for the approval, filing and publication of annual company and consolidated accounts, as well as other statutory reports. Moreover, it provides for a suspension of all criminal liability for management bodies during the additional three-month period in relation to late submission for approval, filing or publication of financial accountability documentation.

Conditions for extension

It should be highlighted that the Luxembourg companies can only benefit from the extension of deadlines mentioned above, if the following conditions are met:

  1. The obligations for approval, filing and publication relate to fiscal period ended 24th June 2020;
  2. The obligations did not fall due prior to 18th March 2020, i.e. the date of the declaration of the state of emergency.

What does that mean in practice? Let us take an example – approval of the financial statements. Each company operating in Luxembourg needs to approve its financial statements within 6 months after the end of financial year. Therefore, only company meeting both following conditions can benefit from this extension:

  1. The financial year ended on 18 August 2019 or later; and
  2. The financial year ended before the end of the state of crisis – 24 June 2020.

All companies whose financial year ended prior to 18 August 2019 or companies whose financial year ended after the end of the state of crisis (24 June 2020), are not eligible to benefit from the extension.

 

Our contacts

Kariem Abdellatif

Kariem Abdellatif

Head of Mercator by Citco

T+352 47 23 23 265
Ekabdellatif@citco.com
LLuxembourg

Robert-Jan Kokshoorn

Robert-Jan Kokshoorn

Head of Business Development,
Mercator by Citco

T+1 415 470 1935
Erkokshoorn@citco.com

Chris Butler

Chris Butler

Head of Operations,
Mercator by Citco

T+370 5 204 7300
Echbutler@citco.com
LVilnius