On 14 October 2019, Pierre Gramegna, Luxembourg’s Finance Minister, presented draft budget law 2020 to the Parliament. According to this law, advance tax rulings issued before 1 January 2015 will be automatically invalid as from the end of the fiscal year 2019.
Under the advance tax ruling procedure introduced at the end of 2014 (applicable from 1 January 2015), new rulings are approved by a tax Commission and have validity limited to 5 years. Taxpayers can rely on this ruling until 31 December 2019. However, companies with a diverging financial year may not rely on these rulings for the 2020 fiscal year. Draft budget law 2020 may establish new procedures for advance ruling requests.
The draft budget law is currently in the process of parliamentary approval and would enter into force from 1 January 2020 after discussion and vote in a parliamentary session.
