Bookkeeping in Luxembourg: Obligations and Best Practices
Mickaël LOC
Certified Accountant ·
Bookkeeping in Luxembourg: Obligations and Best Practices
Bookkeeping in Luxembourg is governed by the law of 10 August 1915 (commercial companies), the law of 19 December 2002 (annual accounts) and the Standard Chart of Accounts (PCN). Every commercial company must keep double-entry accounts, close them annually and file its accounts with the Trade and Companies Register (RCS) via the eCDF platform. This guide describes the obligations, the regimes applicable by size, and best practices for compliant accounting in 2026.
Who must keep accounts?
All Luxembourg commercial companies (SARL, SARL-S, SA, SAS, SCS, SCSp, SCA, SNC, SE, branches) as well as individual traders above certain thresholds must keep full accounts under the PCN. Self-employed professionals and liberal professions below specific thresholds can keep simplified accounts (cash basis). Non-profit associations, foundations and SPFs follow adapted rules.
The three company sizes and their obligations
| Category | Balance sheet | Net turnover | Employees |
|---|---|---|---|
| Micro | ≤ €450,000 | ≤ €900,000 | ≤ 10 |
| Small | ≤ €4.4M | ≤ €8.8M | ≤ 50 |
| Medium | ≤ €20M | ≤ €40M | ≤ 250 |
| Large | > medium thresholds | > medium thresholds | > 250 |
Medium and large companies must appoint an approved statutory auditor. Small and micro companies can make do with a statutory auditor (or dispense with one in certain cases).
The 5 recurring obligations
- 1. Chronological recording All operations are recorded in the accounting books under double entry, as they occur, in chronological order. Journal, general ledger, monthly or quarterly trial balance.
- 2. Retention of supporting documents Invoices, contracts, bank statements, purchase orders kept for 10 years (paper or electronic with guaranteed integrity).
- 3. VAT returns Monthly (turnover > €620,000), quarterly (turnover €112,000 to €620,000) or annual (turnover < €112,000). Filed via eCDF within 15 days of month-end.
- 4. Annual accounts Balance sheet, profit and loss account, notes. Approval by the annual general meeting within 6 months of year-end. Filed with the RCS via eCDF within 7 months.
- 5. Tax returns Form 500 (IRC), form 506 (ICC), net wealth tax return (IF) before 31 December of the year following the financial year.
Luxembourg Standard Chart of Accounts (PCN)
The PCN structures Luxembourg accounting in 7 classes: (1) Equity and provisions, (2) Fixed assets, (3) Inventories and work-in-progress, (4) Third-party accounts, (5) Financial accounts, (6) Expense accounts, (7) Income accounts. Each class includes standardized sub-accounts (e.g. account 106 "Reserves", account 411 "Customers"). The PCN facilitates automated eCDF filing and sector benchmarking via STATEC.
eCDF filing: the unavoidable platform
Since 2016, annual accounts are filed exclusively via the eCDF platform (Electronic Collection of Data from Financial Statements). The company (or its accountant) transmits structured data in XBRL format. The filing automatically generates a PDF overview published in the RCS and indexed by the RESA. Failure to file or late filing exposes the company to administrative fines, exclusion from certain public markets and, in case of recurrence, judicial dissolution.
Best practices in 2026
- Digitalization of invoices: use a document digitization tool to archive and index supplier invoices.
- Monthly bank reconciliation: essential to spot anomalies and avoid year-end discrepancies.
- VAT: don't forget the pro rata if you have a mixed activity (taxable + exempt).
- Provisions for risks: to be recognized as soon as the triggering event is certain (litigation, warranties).
- Monthly reporting: steer the business with a dashboard (turnover, margin, cash) rather than waiting for year-end closing.
Going further
- Pitfalls to avoid: Les 7 erreurs comptables les plus fréquentes au Luxembourg.
- Understanding Luxembourg VAT in depth: TVA au Luxembourg : Taux, enregistrement et obligations.
- Strategic reporting for executives: reporting-mensuel-dirigeant.
Outsourced accounting with Bookkeeper.lu Full-service: monthly entries, VAT returns, eCDF filing, annual accounts, AGM assistance. From €150 per month.
Frequently Asked Questions
What is the deadline for filing annual accounts in Luxembourg?
Companies must file their annual accounts with the Trade and Companies Register (RCS) within 7 months following the close of the financial year. For a 31 December year-end, this corresponds to a deadline of 31 July of the following year.
What is the Standard Chart of Accounts (PCN)?
The PCN is the mandatory accounting framework for all Luxembourg commercial companies. It defines the nomenclature of accounts, the valuation rules for assets and liabilities, and the presentation format of the financial statements (balance sheet, profit and loss account, notes).
What is the eCDF platform?
eCDF (Electronic Collection of Financial Data) is the Luxembourg government portal for the electronic filing of annual accounts. Filing is done exclusively in electronic format via this portal, the data then being transmitted to the RCS and tax authorities.
Can accounting records be kept in a foreign language?
The accounts of Luxembourg companies can be kept in French, German, Luxembourgish or English. The annual accounts filed with the RCS may also be drawn up in English, which is particularly useful for international companies.
At what threshold does a statutory audit become mandatory?
A statutory audit by an approved statutory auditor is mandatory if the company exceeds two of the following three criteria: total balance sheet > €4.4M, net turnover > €8.8M, average headcount > 50 employees.
