July 14: The government's council on 10 July 2015 approved a bill of tax proposals that would affect most multinational groups having subsidiaries in Luxembourg.
Text of the bill is not yet available, but according to a press release from the government, among the measures included in the bill are the following:
- Provisions to transpose into Luxembourg law two amendments to the EU Parent-Subsidiary Directive—i.e., the anti-hybrid rules and the general anti-abuse rules.
- Changes to the tax consolidation regime to allow eligible sister companies to form a tax unity group (so-called "horizontal" tax unity)
- Expanded scope of the investment tax credit (bonification d'impôt pour investissement) to allow the credit with respect to leases of ships used in international commerce
- Expanded scope of taxpayers eligible for the deferral of tax payments with respect to transfers of a company or a permanent establishment outside of Luxembourg
- Extension of a tax credit available for hiring unemployed persons until December 2017
What's next?
The next step is for the bill to be considered and voted on by the Luxembourg parliament.
Meanwhile, the Luxembourg government is currently working on a comprehensive tax reform package for 2017.
Read a July 2015 report [PDF 117 KB] prepared by the KPMG member firm in Luxembourg: Luxembourg – new proposed corporate tax rules.
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