Latest Newsletters & Newsflashes
Jan 30, 2025Luxembourg Case Law I Compliance with the principle of adversarial proceedings in relation to fines for tax offences
On 16 October 2024, the Lower Administrative Court ( Tribunal administratif ) annulled a decision by the Director of the Luxembourg Tax Authorities (“ LTA”) ( Administration des contributions directes) to uphold and increase the amount of a fine imposed by the Tax Office on a tax consultancy company
Oct 23, 2024Luxembourg Case Law I Clarification on the principle of adversarial proceedings for the tax audit
On 11 July 2024, the Higher Administrative Court ( Cour administrative ) delivered a significant ruling in a case between Mrs. (A) and the Direct Tax Administration (ACD), following a tax audit covering the fiscal years 2010 to 2015. After rejecting the claim regarding the territorial incompetence
Jul 04, 2024Relibi Law I Higher Administrative Court rules on the limits of the applicability of the law
In a decision dated 21 March 2024 (no. 49678C), the Higher Administrative Court upheld a decision by the Director of the Luxembourg tax authorities (“ LTA”), who in a specific case refused to apply the final withholding tax on savings income in the form of interest payments made in Luxembourg to
Apr 16, 2024Tax authorities’ obligations in relation to taxpayer's right to be heard | Judgment of Higher Administrative Court
In a judgment of 11 January 2024, the Luxembourg Higher Administrative Court annulled tax assessments issued to a taxpayer for breach of the adversarial principle set out in §205(3) AO (the Abgabenordnung ), which foresees the right for the taxpayer to be heard by the tax office before issuance of
Jan 17, 2024Luxembourg Constitutional Court: the absence of precise legal criteria for the allocation and contribution of funds to and by municipalities is contrary to the principle of municipal autonomy
In four rulings dated 17 November 2023, the Luxembourg Constitutional Court answered preliminary questions put to it in disputes involving the municipalities of Leudelange and Niederanven. The question relates to the definition of the concept of “adjusted population” ( population ajustée), which is
Oct 16, 2023Secondary residence | Introduction of tax benefits
On 18 July 2023, a draft law introducing the concept of secondary residence into Luxembourg tax law and suggesting that certain tax benefits applicable to principal residences be extended to secondary residences (the “ Draft Law”) has been submitted to the Luxembourg Parliament ( Chambre des Députés
Jul 07, 2023Decision of the Higher Administrative Court on the obligation of the tax authorities to respect the adversarial principle
In a judgment of 15 June 2023, the Higher Administrative Court upheld a judgment of the Lower Administrative Court, which had annulled tax returns issued against a taxpayer on the grounds that the tax authorities had failed to respect the taxpayer's rights of defence arising from the adversarial
Apr 24, 2023Newsflash | Question on the constitutionality of the minimum net wealth tax regime
In a judgement dated 18 April 2023 (docket n° 45910), the Lower Administrative Court ( Tribunal administratif) referred to the Constitutional Court the question of whether the difference in treatment between holding companies, and other Luxembourg companies with regard to minimum net wealth tax
Mar 16, 2023Stay of execution granted due to the absence of a decision by the director of tax administration
By an order of 13 January 2023, the President of the Lower Administrative Court ( Tribunal administratif) granted a request for a stay of execution on net wealth tax assessments. The case concerned a Luxembourg company which held a participation in a Swiss company. On the basis of the tax treaty
Jan 03, 2023Budget Law 2023 passed | Brief overview of the main tax changes
The Budget Law for the year 2023 (the “ 2023 Budget Law”), although falling short of the long awaited substantial tax reform, does provide for some tax amendments that may be of interest to individuals and employers as well as to corporations and investment funds. The 2023 Budget Law contains
Oct 05, 2022Obligation to levy VAT on transport services on the Moselle condominium between Luxembourg and Germany
On 1 August 2022, the European Court of Justice (“ ECJ”) ruled in its case C-294/21 that Luxembourg and Germany are obliged to levy VAT on passenger transport services which take place on a section of the Moselle river which constitutes a common territory under the joint sovereignty of both Member
Jul 13, 2022Higher administrative court confirms that DTA is disallowed to control SPF companies
By a decision of 17 May 2022, the Higher Administrative Court ( Cour administrative) confirmed judgments of the Lower Administrative Court ( Tribunal administratif) of 15 September 2021 that overturned a decision rendered by the Director of the Direct Tax Administration ( Administration des