Recent amendments was made to the EU Parent-Subsidiary Directive into Luxembourg tax law and published on 5 August 2015. It has already been submitted to the Luxembourg Parliament. The measures include the provisions to modify the domestic participation exemption regime so as to comply with the new rules and Dividends within the scope of the Parent-Subsidiary Directive, when paid by a Luxembourg company to another EU company (or to an EU permanent establishment of another EU company) would not benefit from a withholding tax exemption if the transaction is characterized as an “abuse of law”. The new measures allow for the possibility to apply “horizontal” tax unity, whereby eligible sister companies could form a tax unity group. The investment tax credit would be made available for a lessor of ships used in international traffic.
Related Posts
Philippines, Luxembourg negotiate for new income tax treaty
February 19, 2026
The Philippines and Luxembourg, during the bilateral meeting on 18 February 2026, held talks regarding the establishment of a new income tax treaty The discussions aimed at strengthening collaboration in trade and investment, creative industries,
Read More
Luxembourg: Chamber of Deputies ratifies updated tax treaty with San Marino
February 17, 2026
Luxembourg’s Chamber of Deputies approved the ratification of the protocol to the 2006 income and capital tax treaty with San Marino on 11 February 2026. The two countries signed an amending protocol to their 2006 tax treaty on 14 May 2025,
Read More Luxembourg: Chamber of Deputies approve amending protocol to tax treaty with Georgia
February 16, 2026
Luxembourg’s Chamber of Deputies approved the ratification of the amending protocol to the 2007 income and capital tax treaty with Georgia on 11 February 2026. Under the amendment, Article 27 of the treaty is replaced to align the exchange of
Read More
Luxembourg: Tax Authority publishes 2025 EUR reference exchange rates
January 30, 2026
The Luxembourg Administration of Direct Tax has issued Circular L.G.-A No. 60bis/11 on 27 January 2026, providing the reference exchange rates of the euro for the year 2025. The rates, which include both year-end (31 December 2025) and annual
Read More
Luxembourg: Council of State approves amending protocol to tax treaty with Georgia
January 27, 2026
Luxembourg's Council of State approved the amending protocol to the 2007 income and capital tax treaty with Georgia on 20 January 2026. The protocol was signed on 3 July 2025 and it updates provisions related to exchange of information. It
Read More Luxembourg: Council of State approves amending protocol to tax treaty with San Marino
January 27, 2026
Luxembourg’s Council of State has approved the ratification of the amending protocol to the 2006 income and capital tax treaty with San Marino on 20 January 2026. The two countries signed an amending protocol to their 2006 tax treaty on 14 May
Read More