Luxembourg: Parliament ratifies DTA with Uruguay
Luxembourg ratified the income and capital tax treaty with Uruguay on 23 December 2016. The treaty was signed on 10 March
See MoreLuxembourg: Tax treaty enters into force with Serbia
The income tax treaty between Luxembourg and Serbia entered into force on 27 December 2016. The agreement generally applies from 1 January 2017. Under the provisions of the treaty, the withholding tax limitations to be applicable to the
See MoreLuxembourg: Parliament does not support EU proposal on CCCTB
The Luxembourg parliament on 22 December 2016 adopted a resolution indicating that Luxembourg does not support the re-launched Common Consolidated Corporate Tax Base (CCCTB) proposal because it is regarded as incompatible with the subsidiarity and
See MoreLuxembourg: Parliament adopts country-by-country reporting
The Luxembourg Parliament on 13 December 2016 passed legislation implementing country- by-country (CbC) reporting requirements for Luxembourg entities that are part of a Multinational Enterprise Group (MNE Group). The new CbC reporting legislation
See MoreLuxembourg-Tunisia amending protocol to treaty entered into force
The amending protocol to treaty between Luxembourg and Tunisia entered into force on 30 November 2016. The treaty was signed on 5 September 2014 to the Luxembourg - Tunisia income and capital tax treaty (1996) . The protocol generally applies from
See MoreLuxembourg: Parliament adopts Budget 2017
The Luxembourg parliament adopted the 2017 Budget bill no.7050 on 22 December 2016. The draft budget was presented to the parliament on 12 October
See MoreLuxembourg: Parliament adopts 2017 tax reform
The Luxembourg Parliament adopted the 2017 tax reform (parliamentary document n°7020) on 14 December 2016 which introduces new tax measures affecting both individual and corporate taxpayers. The publication of the law is expected to be made in the
See MoreLuxembourg: Draft law presented for 2017 budget
On 12 October 2016, the Luxembourg government presented a draft law for the 2017 budget. The draft law includes some new tax measures applicable from 2017 which are summarized below. Despite the fact that the work on Actions 8-10 of the OECD/G20
See MoreEuropean Commission to investigate Luxembourg tax rulings
On 19 September 2016 the European Commission announced that it is commencing an investigation into the tax treatment of GDF Suez Group (now known as Engie) in tax rulings issued by Luxembourg. The tax rulings may in the view of the Commission have
See MoreLuxembourg: Government submitted draft law on CbC reporting to the Luxembourg Parliament
Recently the Luxembourg Government submitted draft law n°7031 on country by country (CbC) reporting to the Luxembourg Parliament. The draft law is in accordance with a European Union (EU) Directive of 25 May 2016 requiring all EU Member States
See MoreLuxembourg: Government passed the tax reform plans for 2017
The government of Luxembourg adopted tax reform plans for the year 2017 on 13 July 2016. The proposed changes are in line with the announcements made during the State of the Nation address on April 26, 2016. The changes announced for corporations
See MoreLuxembourg: explanations regarding modifications to Net worth tax 2016
The Luxembourg administration for direct taxes published Circular which provides explanations regarding the 2016 changes of the Net worth tax (NWT), on 16 June 2016. A reduced rate of 0.05% applies for taxable net worth above EUR 500 million from 1
See MoreLuxembourg: Corporate income tax rate proposed by reducing 3%
On 3 June 2016, the Ministry of Finance of Luxembourg published its Stability and Growth Program for 2016-2020. To further economic development, a reduction of the corporate income tax rate from 21% to 18% and an increase of the investment credits
See MoreIMF report comments on economic position of Luxembourg
On 16 May 2016 the IMF issued a report following the conclusion of talks in Luxembourg under Article IV of the IMF’s articles of agreement. Economic growth in Luxembourg has been strong and reached 4.8% in 2015 driven by net exports of financial
See MoreLuxembourg: Proposed 2017 tax reform measures
The government of Luxembourg released an outline of the proposals on 29 February 2016 for tax reform in 2017. The gradual introduction of the Organisation for Economic Co-operation and Development recommendations made in the framework of the Base
See MoreIMF comments on Luxembourg tax changes
As part of a report on Luxembourg’s economic position following discussions under Article IV of its articles of agreement the IMF has commented on the current tax reform. The report notes that implementation of the international tax transparency
See MoreLuxembourg: Circular on Reduction of Net Worth Tax
The Luxembourg administration for direct taxes published Circular on 19 November 2015 regarding the reduction of the net worth tax. In order to obtain the tax reduction, a company must allocate a portion of its profits of a tax year to a reserve
See MoreLuxembourg: Electronic filing for company income tax return
Electronic filing is now available for Luxembourg resident company. On 29 October 2015, the Finance Minister declared a new e-filing tool for company income tax return, municipal business and net worth tax return. Initially e-filing process is
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