The Luxembourg Government has uncovered some details of its future corporate tax plans. Increasing the rate of business tax has been ruled out by the Government. They have however confirmed plans to further simplify and modernize tax procedures for companies and ensure a high level of computerization in the Luxembourg’s tax administration.
The European Union is discussing the revision of the savings tax directive providing for exchange of information on tax matters between EU countries. Luxembourg is under pressure from the other EU countries to increase the exchange of tax information and scrap its current banking secrecy rules. Although Luxembourg has expressed its intention to ease some banking secrecy rules from 2015 onwards it is awaiting the finalization of deals between the EU and five other countries including Switzerland before committing to further tax moves.
