Luxembourg unveils key tax measures to boost its economy
On 17 July 2024, bill of law 8414 (Bill) was submitted to Parliament, introducing changes designed to make Luxembourg more attractive and more competitive, and reduce the tax burden on individuals.
Cross-border business tax – EU Commission proposes BEFIT, Transfer Pricing and Hot Directives
Corporate taxpayers with cross-border operations in the EU are expected to be significantly impacted by the proposed BEFIT, Transfer Pricing and HOT Directives.
Luxembourg government proposes amendments to tax procedures
On 28 March 2023, the Luxembourg government submitted to Parliament Bill of law no. 8186 amending the General Tax Law and introducing new provisions about transfer pricing and accounting.
EU Commission issues draft directives on substance requirements (ATAD 3) and minimum taxation
On 22 December 2021, the EU Commission issued two major draft directives that are expected to have a significant impact on EU corporate taxpayers
Key changes to Luxembourg’s tax regime as multiple bills of law adopted
The Luxembourg Parliament has adopted several important tax bills of law, making significant changes to the country’s tax regime for both entities and individuals, and modernising tax administrative procedures.
Pillar 2 implementation in Luxembourg: Bill submitted to Parliament
On 4 August 2023, the Luxembourg government presented Bill of law no. 8292_ implementing Council Directive (EU) 2022/2523_ of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union.
Tax Compliance
A pilot through the complex waters of tax compliance
New double tax treaty signed between Luxembourg and the United Kingdom
On 7 June 2022, the governments of Luxembourg and the United Kingdom (the “UK”) signed a new double tax treaty_ (the “New Treaty”) replacing the treaty of 1967 (the “Current Treaty”), as amended.
Luxembourg tax authorities clarify tax compliance for reverse hybrid entities
On 9 June 2023, the Luxembourg tax authorities issued a Circular on reverse hybrids within the meaning of article 168quater of the income tax law. It is accompanied by an FAQ on new tax form 205, the tax return to be filed by reverse hybrids.
Personal Tax, Social Security and Reward
tailored for businesses and individuals
Individual taxation and tax class reform: new bill of law introduced into Luxembourg Parliament
On 6 January 2026, the Luxembourg government moved forward with its long-awaited reform of personal income taxation via bill of law 8676, which introduces individual taxation for couples and a single tax class for all taxpayers, subject to a 25-year transitional period during which existing married couples and civil partners may continue to be taxed jointly.
Tax Compliance Services
Steering Through Tax Compliance Complexity with Expert Guidance
EU Commission proposes a new tax framework
Corporate taxpayers are expected to be significantly impacted by the proposed framework, in particular the new framework for income taxation for businesses in Europe
Pillar 2 implementation in Luxembourg: amendments to bill of law published
On 13 November 2023, the Luxembourg government published amendments to Bill of law no. 8292 implementing EU Council Directive on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Pillar 2 Directive).
EU adopts FASTER directive: a milestone for streamlining withholding tax relief
On 10 December 2024, the Council of the EU formally adopted the Faster and Safer Tax Relief of Excess Withholding Taxes (FASTER) directive. The text has been significantly modified since the first version of the proposal was published in June 2023.
New tax incentive for start-up investments: are you ready to maximise this opportunity?
Luxembourg has just introduced a new tax credit for investments in start-ups to encourage innovation and entrepreneurship. The incentive applies as from the 2026 tax year and aims to support early-stage companies while offering individual taxpayers a significant tax benefit.
Key Tax Measures Unveiled
On 23 May 2024, bill of law 8388 (Bill) was submitted to the Luxembourg Parliament, introducing several measures that complement existing domestic tax rules: net wealth tax simplification, participation exemption opt-out, share repurchases codification and electronic tax return for directors’ fees.
Tax 2023: What to expect – Discover the recordings of the webinar series
Discover or re-discover the recordings of our annual tax event which took place as a series of webinars