Luxembourg Prime Minister Luc Frieden unveiled his government’s strategic fiscal roadmap in the annual State of the Nation Address on 11 June, 2024. Among the key proposals, he outlined a reduction in the corporate tax rate, slated to decrease from 17% to 16% starting 1 January, 2025, aimed at boosting competitiveness and attracting more businesses to the region.
In addition to corporate tax reforms, the government plans to introduce a pioneering “single tax class” personalised to support single parents by 2026, complemented by new tax relief measures set to take effect from the beginning of 2025.
Further initiatives include adjustments in income tax brackets to ensure that taxpayers benefit more directly from economic growth through enhanced indexation.
“We want to lead our country into the future in peace, freedom and prosperity. That remains our objective, the government works on this every day,” he said.
