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.
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.
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.
AML/CFT – Anti-Money Laundering and Countering the Financing of Terrorism
Money laundering and terrorism financing are threats that require constant vigilance. Pressure and regulatory scrutiny are intensifying at both national and international level, with professionals increasingly facing complex global AML/CFT rules, including those stemming from targeted financial sanctions. This has led to a significant rise in supervisory action and regulatory expectations, creating an almost zero-tolerance environment.
New Tax Procedures Law in the UAE
On 31 July 2017, the President of the United Arab Emirates (the “UAE”) issued the new Tax Procedures Law (the “Law”). This Law contributes to build the UAE’s tax system, to regulate the administration and collection of taxes and most importantly, to clarify the respective rights and obligations between the Federal Tax Authority (the “FTA”) and the taxpayer.
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
Deposition of OECD Multilateral Instrument and update to double tax treaty network
On 9 April 2019, Luxembourg deposited with the Organisation for Economic Cooperation and Development (“OECD”) its instrument of ratification of the Multilateral Instrument (“MLI”), after having passed the ratification law on 14 February 2019. Additionally, the Luxembourg tax administration has updated its list of new and ongoing double tax treaty negotiations, including the initialling of a new double tax treaty with Ghana and the long-awaited treaty with Argentina.
Financial crime
Companies are facing increasing pressure to detect and prevent financial crime
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.
The AML- CTF professional obligations from a tax compliance perspective
With increasing attention to governance and regulatory aspects, mastering the art of proper organization and meticulous documentation of AGMs /EGMs isn't just important—it's absolutely paramount. During this training session, you will experience different simulations and hands-on exercises practising the skills of organising, conducting and documenting AGMs / EGMs through engaging case studies and real-life scenarios.
New bill on the implementation of the 2017 tax reform package
On 26 July 2016, bill of law N° 7020 on the implementation of the 2017 tax reform package was filed by the Luxembourg Government with the Parliament (Chambre des Députés). The new measures affecting both business and individual taxation were originally announced on 29 February 2016 (please refer toour Newsflash dated 29 February 2016 available in our website). The bill mainly follows the announced measures with certain amendments.
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.
Strengthened cooperation between Luxembourg tax agencies
Starting on 24 June 2024, the direct tax authorities (ACD) and the indirect tax authorities (AEDT) have enhanced their cooperation, marking a significant step forward in tackling tax fraud and increasing tax revenues.
Global minimum taxation (Pillar 2) in Luxembourg: new bill of law implements 2023 OECD guidance
On 12 June 2024, the Luxembourg government presented a bill of law to incorporate clarifications and technical provisions resulting from the OECD’s Pillar 2 Administrative Guidance issued in February, July and December 2023 into domestic law.
ACCOUNTING – Impact of the Luxembourg Pillar 2 rules on 2023 annual and consolidated accounts
In February and March 2024, the Luxembourg Accounting Standards Board (CNC) published two Q&As that provide useful guidance on the impact of the Pillar 2 rules on 2023 (consolidated) financial statements of concerned Luxembourg entities and groups.
Get some practice! Master the Luxembourg corporate tax return and avoid pitfalls
With increasing attention to governance and regulatory aspects, mastering the art of proper organization and meticulous documentation of AGMs /EGMs isn't just important—it's absolutely paramount. During this training session, you will experience different simulations and hands-on exercises practising the skills of organising, conducting and documenting AGMs / EGMs through engaging case studies and real-life scenarios.
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.