On 12 October 2020, Luxembourg’s Finance Minister presented the draft budget law 2023 to the Parliament. There are no measures regarding major tax reform or an increase in the tax rate in the draft budget law. The draft budget law sets out the following main tax measures:
Extension of deadline for tax returns
The deadline for filing tax returns will be postponed to December 31 of each year from 2023. The extension will apply to corporate tax returns, individual, and municipal business tax from the tax year 2022, and net wealth tax returns from the tax year 2023.
Reverse hybrid entity rule
The draft budget law proposes to amend Article 168 quater of the Luxembourg Income Tax Law (LITL) regarding reverse hybrid entity rule in line with the ATAD 2 directive.
