Luxembourg Tax Alert 2017-05 | KPMG | LU

Luxembourg Tax Alert 2017-05

Luxembourg Tax Alert 2017-05

Prime Minister Xavier Bettel, on 26 April 2017, delivered a speech in which he presented the government’s policy plans, some of which concern tax.

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Prime Minister Xavier Bettel, on 26 April 2017, delivered a speech in which he presented the government’s policy plans, some of which concern tax. The text of the speech (in Luxembourgish) is available here.

The main tax-related points announced by Mr Bettel during his speech are as follows:


Patent box

The Prime Minister announced the introduction of a new intellectual property (IP) tax regime in 2018. This new IP regime shall reinforce research and development (R&D) activities in Luxembourg and stimulate the R&D spending of foreign investors in Luxembourg. This new IP regime will have to be in line with the new international tax standards set by the EU and OECD (in particular, BEPS Action report 5). No further details have been revealed.


Tax transparency

The Prime Minister discussed the numerous measures implemented by Luxembourg to reinforce tax transparency in line with its obligations as a member of the EU and the OECD. As regards the exchange of information, he mentioned that Luxembourg is not in favour of the public reporting of confidential information. In his speech, the Prime Minister stated that information should be exchanged only between authorities.

We will inform you about future developments.

Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (I) avoiding penalties that may be imposed on any taxpayer or (II) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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