The tax administration is conducting tax reassessments on several dozen contractors who were employed through umbrella companies.
Indeed some umbrella companies in Luxembourg have organized a tax fraud scheme by which the major parts of the amounts paid to the consultants were not declared to the tax authorities. Contractors, in good faith, thus find themselves having to pay important additional amounts of taxes and social contributions.
Finally in terms of professional liability, there are legal solutions which enable you to be protected.
1. Portage is not allowed in Luxembourg.
2. Given the good social protection of self-employed in Luxembourg, there is no major interest in being employed rather than self-employed: the self-employed, in the same way as the employee, can benefit from sick leave and unemployment benefits.
3. The costs relating to the accountancy are well below the management fees that umbrella companies may charge.
Why Galux
If you want, as a contractor, to switch from the status of employee to self-employed, do not hesitate to contact us.
From your business permit to your annual accounts.
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