Draft Law N°6706 dated July 17th 2014 (the "Draft Law") intends to modify the net wealth tax assessment procedure in order to simplify and accelerate the assessment process.
Since 2006, Luxembourg net wealth tax only applies to corporations subject to corporate income tax. Net wealth tax for individuals has been abolished.
Currently, the net wealth tax law of October 16th 1934 ("Vermögensteuergesetz") provides that net wealth tax is determined on a three-year basis through a so-called general tax assessment ("Hauptveranlagung"). A new tax assessment ("Neuveranlagung") is only necessary if, within the three-year period, the net wealth of the corporate taxpayer varies beyond certain limits. The determination of the unitary value, which serves as net wealth tax base in line with the valuation law of October 16th 1934 ("Bewertungsgesetz"), follows the same rules.
As from January 1st 2015, the determination of the unitary value as well as the resulting net wealth tax assessment will be established on an annual basis.
The Draft Law furthermore intends to adapt the rules governing the advance net wealth tax payments. Some piecemeal amendments i.a. to the collection procedure for income tax and excise duties, as well as to the regime concerning the interruption of the limitation period, are also foreseen.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
