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On 27 October 2026, the Luxembourg Lower Administrative Court ( Tribunal administratif , the “ Tribunal”) delivered its judgment in Case No. 49275 concerning a transfer pricing (“ TP”) adjustment on the resale of clothing to a Belgian subsidiary. Although the Direct Tax Administration (

On 15 October 2026, the Court of Justice of the European Union (“ CJEU”) delivered its judgment in the Neo Group case, confirming that the genuine economic activity of a parent company does not, in itself, prevent the denial of the withholding tax exemption under the Parent-Subsidiary Directive (“

On 7 October 2026, the Government presented the State budget for 2027, with tax measures aimed at supporting businesses with a cut in corporate tax rate and a clear orientation towards investment. Most of the measures are set out in draft law No. 8800 on the 2027 budget (the “ Draft Budget Law”)

On 16 July 2026, the Luxembourg Government announced a package of measures to support the real estate market. Three draft laws have been submitted to the Luxembourg Parliament ( Chambre des Députés ): they aim to increase the registration and transcription duties tax credit ( Bëllegen Akt)

On 22 July 2026, the Luxembourg Higher Administrative Court ( Cour administrative ) (the “ Court”) (No. 53194C ) clarified the framework to assess the arm’s length character of a debt restructuring as well as the rules applicable to the accounting of debt and related interest for tax purposes. Facts

The Luxembourg Government filed Draft Law No 8782 (the " Draft Law") with the Luxembourg Parliament ( Chambre des Députés ) on 1 July 2026, proposing a comprehensive reform of the tax regime applicable to employee stock option plans under the Luxembourg Income Tax Law of 4 December 1967, as amended