Newsletters & Newsflashes

On 6 th March 2024, the Luxembourg government filed the 2024 budget bill (“ Budget Bill”) and announced that it will continue to work towards the implementation of a tax policy aimed at strengthening the competitiveness of the economy and increasing household purchasing power. While certain measures

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

On 20 February 2024, the European Council updated the list of non-cooperative jurisdictions for tax purposes. This list was previously updated on 17 October 2023 (please refer to our newsletters here for more details). The main change from the previous version is the withdrawal of the Bahamas

Key Takeaways On 6 February 2024, the Luxembourg Higher Administrative Court denied the benefits of the Luxembourg participation exemption to participations which had been lent by a Luxembourg-resident capital company to third-parties as “ créances-titres ”. Facts at hand In the case at hand, a

On 25 March 2024, the Luxembourg Tax Authorities (“ LTA”) published their first FAQ regarding the law of 22 December 2023 on the minimum effective taxation transposing Council Directive (EU) 2022/2523 of 15 December 2022 (the “ Pillar Two Law”). For further insights into the Pillar Two Law, please

Following the government’s coalition program and recent announcements, the draft bill n° 8353 was filed by the government on 7 February 2024, providing a first package of measures to enhance real estate investments which includes several tax measures. Temporary tax measures applicable for 2024 The

CJEU judgement on VAT treatment of directors’ fees ECJ Rules in favour of Amazon in State aid case The minimum net wealth tax rules for holding companies ruled unconstitutional EC Proposal for a Transfer Pricing Directive Directive proposal establishing a head office tax system for SMEs in Europe

Key takeaways The Luxembourg tax authority published a “frequently asked question” (“ FAQ”) on 7 December 2023 providing guidance on application of the new EU obligations of digital platform operators (Council Directive (EU) 2021/514) on administrative cooperation in the field of taxation

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

As from fiscal year 2024, new rules apply to the Luxembourg investment tax credit (“ ITC”) mechanism provided by Article 152 bis of the Luxembourg income tax law (“ LITL”). The mechanism has been revised, and its benefits extended to investments and expenses incurred in the context of digital

On 3 October 2023, the OECD published the multilateral convention (“ MLC”) to facilitate the implementation of the Pillar Two Subject to Tax Rule (“ STTR”) together with an explanatory statement. The STTR is part of Pillar Two together with the GloBE Rules (i.e., Income Inclusion Rule and Undertaxed

On 20 December 2023, the law (the “ Pillar Two Law”) transposing Council Directive (EU) 2022/2523 of 15 December 2022 (the “ Pillar Two Directive”) has been adopted by the Luxembourg parliament, thus ensuring the Income Inclusion Rule (“ IIR”) and the Qualified Domestic Minimum Top-up Tax (“ QDMTT”)