9 June 2021
The Luxembourg Administration of Direct Tax has published Circular L.I.R. n° 105/2 of 4 June 2021, which provides guidance on the deduction of costs for professional activities. Key points of the guidance regarding equipment costs include the following:
Guidance is also provided for other costs, including expenditure relating to the maintenance of a home office (workspace). Such expenditure is deductible only if used exclusively or almost exclusively for professional activity, with a pro-rata allocation of costs related to the building or dwelling as a whole, such as rent, interest expense, repair and maintenance costs, utility costs, etc. It is also provided that a home office (workspace) must be a separate room, with the partial assignment of a room for professional activity not accepted for deduction purposes.
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