On 29 February, earlier than initially expected, the Luxembourg Government released its long-awaited proposals for the tax reform to be implemented in 2017, which are built on four pillars: sustainability, fairness, selectivity, and competitiveness.
The Government outlines the main measures being currently contemplated, as described below, without giving more concrete details at this stage.
As far as corporations are concerned, the proposed decrease of the corporate income tax rate is a positive sign of the reinforcement of Luxembourg’s tax competitiveness. For individuals, the measures are balanced and in line with the Government’s objective of creating a fairer tax system. More details on the upcoming tax reform are now expected to be released in April during Prime Minister Bettel’s budget speech.
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