COVID-19 measure- Extension of deadline for filing of annual accounts and related reports
Amongst the numerous legislative and regulatory measures adopted or to be adopted in the period of COVID crisis, a new bill of law is about to pass into law which shall assist companies to meet its ongoing obligations provided for under the law of 10 August 1915 on commercial companies (“Company Law”) and the law of 19 December 2002 on the register of commerce and companies and the accounting and annual accounts of undertakings (“2002 Law”).
In that respect, the bill of law 7541 on extension of deadlines for the filing and publication of annual accounts, consolidated accounts and related reports during the state of crisis provides for an extension of the deadlines for the deposit and publication of the annual and (if applicable) consolidated accounts and all the related reports which are required by virtue of Company Law and the 2002 Law to be filed and published. The current applicable rules (i.e. prior to the adoption of the bill of law) require that the annual accounts (and if applicable consolidated accounts) and related reports shall be approved and filed within 6 months after the financial year end and published within 7 months after the financial year end of the relevant company.
The new bill of law provides for a 3 months extension of the filing and publication deadline.
This extension is however only applicable with respect to annual accounts (including consolidated accounts) and related reports, where:
(i) the financial year has ended prior to the end of the state of crisis declared by the government; and
(ii) the filing and publication deadlines have not elapsed on 18th March 2020.
The provisions in the Company Law regarding the sanctions for the delay in filing of the annual accounts (and applicable consolidated accounts) and reports have similarly been adapted. For more details please refer to the bill of law 7541.
Likewise, 3 months extensions of deadlines measures shall be implemented with respect to the specific laws applying to the financial sector, provided no harmonization at European level applies. A bill of law 7540 has been filed on 26th March 2020. For more information please refer to the bill of law 7540 and the Q&A available on the website of the CSSF: https://www.cssf.lu/en/home/
Whilst the 3 months extension of the deadline for filing and publication of annual accounts and reports shall assist the relevant companies and partners to meet their corporate and accounting obligations in a period where services providers assisting in finalizing or auditing the accounts and reports may face resource shortages, ILA encourages its members and partners to maintain their efforts to abide by the their legal obligations in a timely manner.
ILA draws the attention to its members that the 3 months extension is a temporary measure only meant to deal with the effects of the COVID crisis and the current state of crisis declared by the government.
Written by ILA Legal & Regulatory committee.