The Parliament of Luxembourg published its bill 6720 & 6722 on 15 October 2014 regarding new tax measures for corporation and individual which will be effective from 1 January 2015.
The Proposed new tax measures for 2015 are as follows:
Corporations:
There is no proposal to increase the corporation tax rate and no signals of any other changes were given. A revised and unified system for advance tax confirmations will come into force. The minimum corporate income tax rules have been modified as the sum of fixed financial assets must exceed both 90% of the total gross assets and EUR 350,000. All entities with total gross assets not exceeding EUR 350,000 will in 2015 be liable to pay only the EUR 535 minimum corporate income tax due by entities whose balance sheets do not mainly comprise financial assets.
Individuals:
An addition contribution of 0.5% named as “for the future of children” will be payable by individual taxpayers and which will apply on the income from pension, unemployment income and patrimony income.
VAT:
The current reduced, intermediary and standard VAT rates will be increased by 2 percentage points to become respectively 8%, 14% and 17% as from 1 January 2015.
