On 11 October 2017, and the last time before next year’s parliamentary elections, the current Luxembourg Finance Minister presented the budget law for 2018 to the Parliament (Chambre des Députés).

The main tax-related provisions of the Bill of Law N° 7200 (“Bill”) as laid out below in more detail include inter alia:

• Changes to the capital gains tax treatment of business restructurings;
• Improvements to the investment tax credit system;
• Extension of the VAT exemption under Article 44, 1, d) of the Luxembourg VAT law to the management of collective internal funds held by a life-insurance undertaking;​
• Introduction of 3 assessment options for resident spouses/partners;
• Extension of the inheritance tax exemption to spouses/partners without common descendants; and 
• Amendment to the procedure of exchange of information upon request in tax matters further to the Court of Justice of the European Union (“CJEU”) Berlioz case law (C-682/15).

 As a reminder, a summary of the newly proposed IP Box regime is included as well in this document.

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