Luxembourg: Patent box regime announced for 2018

Luxembourg: Patent box regime announced for 2018

Prime Minister Xavier Bettel, on 26 April 2017, delivered a speech in which he presented the government’s policy plans including those concerning tax. The prime minister announced the introduction of a new intellectual property (IP) tax regime in 2018. This new IP (or patent box) regime would aim to reinforce research and development (R&D) activities in Luxembourg and stimulate the R&D spending of foreign investors in Luxembourg.

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The patent box / IP regime would need to be in line with international tax standards as set by the EU and OECD (in particular, BEPS Action 5). No further details have been revealed.

The prime minister also discussed other measures implemented by Luxembourg to reinforce tax transparency, in line with obligations under the EU and the OECD. As regards the exchange of information, he mentioned that Luxembourg is not in favour of public reporting of confidential information and that such information is to be exchanged only between authorities.

 

Read an April 2017 report prepared by the KPMG member firm in Luxembourg

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