Newsletters & Newsflashes

In a significant ruling on 6 June 2025 (Case n° 47100), the Luxembourg Lower Administrative Court (the " Lower Administrative Court"), ruled on the interest rates applied by a Luxembourg company performing financial intermediation activities (falling within the scope of the Luxembourg Circular L.I.R

On 6 June 2025, the Lower Administrative Court ( Tribunal administratif) issued two similar judgments in cases n° 49747 and 49749, rejecting the appeals lodged by a Luxembourg limited partnership ( société en commandite simple) against decisions of the director of the tax authorities and confirming

On 13 May 2025, the Council announced that it has reached an agreement on the VAT rules for distance sales of imported good and import VAT. In the future, foreign traders or platforms will be made liable for import VAT and VAT on distance sales of imported goods in the Member State of the final

On 17 April 2025, the Luxembourg Higher Administrative Court ( Cour administrative), delivered its long awaited decision on case n° 50.602C pertaining to the qualification of interest free loans under Luxembourg tax law and the existence of a permanent establishment in a treaty jurisdiction. With

On 25 June 2024, Luxembourg and the Republic of Moldova signed a protocol (the “ Protocol”) amending the double tax treaty originally signed on 11 July 2007 (the “ DTT”). The law of 25 march 2025 , approving the Protocol, was published in the Luxembourg Official Gazette on 7 April 2025. Key

Pursuant to Article 137, paragraph 5a of the amended law of 4 December 1967 on income tax (the “ LITL”), and by way of derogation from the normal taxation system, remuneration paid by temporary employment contractors under an assignment contract to temporary employees whose agreed gross hourly wage

On 27 February 2025, the Court of Justice of the European Union (CJEU) handed down a decision on the procedural rights of administrators which may be held jointly and severally liable for the VAT debts of the companies they administer. As a reminder, many Member States including Luxembourg provide

On 26 February 2025, the Luxembourg Direct Tax Authorities issued a new Circular L.I.R. No. 154 ter/1, replacing Circular L.I.R. No. 154 ter/1 dated 24 May 2023, on single-parent tax credit (" CIM") provided for in Article 154 ter of the Luxembourg income tax law (“ LITL”). As from the 2025 tax year

Key takeaways On 14 February 2025, the Court of Justice of the European Union (“ ECJ”) handed down a reasoned order in case C-270/24, Granulines Invest Kft, regarding the right to deduct input value added tax (“ VAT”) for invoice incorrectness pertaining to the supply of goods. Facts of the case The

The law of 22 May 2024 provided for several short term tax measures (applicable for fiscal year 2024) in favour of the Luxembourg real estate market as well as long term tax measures applicable as from 2025 (see our previous newsflash ). To support the ongoing recovery of the real estate sector, the

On 3 April 2025, the European Court of Justice (“ ECJ”) delivered a decision ( C‑228/24 ) providing clarifications on the interpretation of the anti-abuse provision included in the parent-subsidiary directive. The decision recalls the broad character of the rule, not limited to identifying conduit

On 4 April 2025, Draft Law No. 8526 was submited to the Luxembourg Parliament ( Chambre des Députés ) and intends to introduce, as from fiscal year 2026, a tax credit for private individuals investing in Luxembourg startups amounting to 20% of their equity investment. The measure is designed to ease