Failure to Submit Tax Declarations by December 31, 2023, May Incur Penalties

Luxembourg - January 31, 2024

As the deadline for submitting tax declarations for the income year 2022 approached on December 31, 2023, 86.70% of taxpayers successfully fulfilled this obligation. However, a percentage of individuals who failed to comply should be aware that penalties may be imposed.
One of the significant events in 2023 was the culmination of the deadline for filing tax declarations for the income year 2022, which was set for December 31. It is crucial to note that, although individuals initially had until March 31 of the preceding year to complete this task, the deadline was extended once again until December 31.
Out of every ten individuals, one failed to submit their tax declaration on time, indicating the persistent pressure in the final weeks of 2023. Those who procrastinated should understand that the cash penalty "strongly depends on the delay" and may even lead to legal summons from judicial authorities. If the tax declaration remains outstanding, the tax authorities can directly impose additional taxes on income or apply a "late submission surcharge." Regardless of the consequence, individuals are advised to monitor their mailboxes closely, as the short grace period for tax payment is strictly enforced, and any delays may result in arrest warrants or legal summonses.
It is imperative for individuals to promptly address their tax obligations to avoid potential legal consequences and ensure compliance with financial regulations. The tax authorities emphasize the importance of adhering to deadlines, as failing to do so may lead to financial penalties and legal actions. As we move into the new fiscal year, taxpayers are encouraged to stay informed about their responsibilities and meet their obligations in a timely manner.