On 4 August 2023, the Luxembourg government submitted draft bill no 8292 to the Parliament. The bill aims to incorporate the OECD Pillar Two global minimum tax rules in line with EU Council Directive 2022/2523 of 14 December 2022.
These rules require Member States to introduce a global minimum effective tax rate of 15% for corporate groups with annual global turnover of at least EUR 750 million. This minimum rate will apply in each jurisdiction in which the group operates and will be calculated on an adjusted accounting measure of profit.
Luxembourg is required to complete the legislative process and grant its approval for the implementation of the Pillar Two global minimum tax by the deadline of 31 December 2023.
