Luxembourg 🇱🇺

Welcome to our summary of crypto tax regulations in Luxembourg. In recent years, Luxembourg has taken steps to clarify the direct taxation and VAT treatment of cryptocurrencies. It's important to note that tax regulations can be subject to interpretation and may vary based on individual circumstances. Here are the key points to understand:

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Tax Classification:

• Cryptocurrencies are considered intangible assets for direct tax purposes in Luxembourg.
• When used as a payment method, the nature of income received in cryptocurrencies does not change.
• Income from cryptocurrency disposal is classified as either commercial income or "other income."

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Luxembourg Corporate Taxpayers:

• Gains from cryptocurrency disposal are treated as commercial income.
• Commercial income is fully taxable at a combined corporate income tax and municipal business tax rate of 24.94%.

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Luxembourg Individual Taxpayers:

• If engaged in a commercial activity, gains from cryptocurrency disposal are considered commercial income.
• Commercial income is subject to progressive tax rates ranging from 0% to 42%.
• If not engaged in a commercial activity, gains may be considered "other income."
• "Other income" realized within six months of acquisition is taxable at progressive tax rates.

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Luxembourg Partnerships:

• Tax treatment depends on whether the partnership is engaged in a commercial activity.
• Non-commercial partnerships are generally not subject to Luxembourg taxation on gains from cryptocurrency disposal.
• Commercial partnerships are subject to municipal business tax at a rate of 6.75%.

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Value-Added Tax (VAT):

• The VAT exemption applicable to transactions with legal tender currency extends to virtual currencies when accepted as a method of payment by operators.

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Other Considerations:

• The tax treatment of activities such as mining, receiving cryptocurrencies for free, staking, and lending is not explicitly clarified by the tax administration and may require case-by-case analysis.
• There is conflicting information regarding the taxation of capital gains on cryptocurrencies held for more than six months, with some sources suggesting they are not taxed.

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It is important to consult with tax professionals or official tax authorities to ensure compliance with current tax regulations and to obtain personalized advice based on your specific circumstances.

https://complyadvantage.com/insights/crypto-regulations/cryptocurrency-regulations-luxembourg/

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https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/luxembourg

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https://www.simmons-simmons.com/en/features/tax-on-cryptocurrency/clb0yenvm006itqc0aor97dl1/how-luxembourg-taxes-cryptocurrency-and-nfts

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https://delano.lu/article/from-0-to-52-tax-on-crypto-cap

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https://taxx.lu/blog/how-to-report-your-crypto-virtual-currencies?locale=en

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The information provided in this collection of crypto country tax rates is intended for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the information, it should not be relied upon as legal or financial advice.

Tax laws and regulations are subject to change and can vary significantly from country to country, and even within different regions of the same country. The tax rates and guidelines mentioned in this collection may no longer be current or may not apply to your specific situation.

It is important to consult with qualified tax professionals, accountants, or financial advisors who are knowledgeable about the tax laws in your specific jurisdiction. They will be able to provide you with personalized advice tailored to your circumstances and keep you informed of any recent updates or changes in tax regulations.

Furthermore, the information provided in this collection does not constitute an endorsement or recommendation of any specific tax strategy or course of action. The tax rates and guidelines mentioned are meant to serve as a starting point for your research, but it is essential to conduct thorough due diligence and seek professional advice before making any decisions regarding your tax obligations.

We disclaim any liability for any loss or damage incurred by individuals or entities relying on the information provided in this collection. By using this collection, you agree to release us from any claims, demands, or damages arising out of or in connection with the use of this information.

Please note that the collection of crypto country tax rates does not cover all jurisdictions and should not be considered exhaustive. It is your responsibility to stay informed about the tax laws and regulations applicable to your specific circumstances.

Always consult with qualified professionals and refer to official government sources for the most up-to-date and accurate information regarding tax rates and regulations.

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