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Following the legislative elections in October 2023, the Luxembourg government unveiled its 2023–2028 coalition agreement, outlining initiatives to enhance the country’s economic competitiveness. The agreement places particular emphasis on the financial sector, with key tax reforms designed to foster sustainable growth and reinforce Luxembourg’s status as a leading international financial center over the next five years.

The tax unity regime allows a group of Luxembourg companies to be taxed as a single taxpayer on a consolidated basis. This regime enables the offsetting of profits and losses among group members, potentially reducing the group’s overall tax burden.

The Grand-Ducal Decree of 6 June 2025 modified the lists of Participating Jurisdictions and Reportable Jurisdictions for the CRS reporting year 2024. The Grand-Ducal Decree added the following jurisdictions to the List of Participating Jurisdictions. In addition, certain jurisdictions were added to the list of Reportable Jurisdictions.

As recently mentioned in the news, the first VAT inspections on leasings are beginning to take place, especially for German cross-border workers. We remind you of the importance of analysing your situation: - Are you affected by the QM ruling? - Are you compliant from a salary and accounting perspective?

Following the monthly meeting of the Index Commission, the STATEC has confirmed the triggering of a new salary indexation as of 1 May 2025. The applicable index increases to 968,04 points (instead of 944,43 points), resulting in a 2.5% increase in wages, salaries and pensions.

Luxembourg companies that prepare their annual accounts in a foreign currency may be exposed to foreign exchange (FX) risk for tax purposes. Such risk could be mitigated by submitting a timely request to report the taxable income in this foreign currency.

Risking double taxation or losing your social security system? Never! How to avoid it: Closely monitor your employees' social security and tax thresholds.

Luxembourg resident capital companies distributing dividends to their shareholder(s) must file a withholding tax (WHT) return within eight days from the date the dividend becomes available (even if no WHT is due).

Luxembourg resident corporations and Permanent Establishments (PEs) can reduce their 2025 Net Wealth Tax (NWT) by setting up a 5-year unavailable NWT reserve in their 2025 annual accounts.

Following the Court of Justice of European Union (CJEU) decision in case C-288/22 and the subsequent judgment of the Luxembourg District Court on 22 November 2024, the Luxembourg VAT authorities (AED) issued Circular N° 781-2 on 11 December 2024.

2024 Co-funding applications are fast approaching! As the application deadline is 31 May 2025, we are here to assist you throughout the process.

On March 11, 2025, The Council of the European Union officially adopted the VAT in the Digital Age (ViDA) Package! From now on and progressively until January 2035, a comprehensive set of measures aimed at simplifying and modernizing VAT rules for the Digital Age will follow.

Taxpayers are required to make quarterly advance payments for Corporate Income Tax (CIT), Municipal Business Tax (MBT) and Net Wealth Tax (NWT).

The Luxembourg Business Registers (“LBR”) has recently introduced new changes to the administrative requirements to be introduced at the Trade and Companies Register (“RCS”) and which will apply as from 12 November 2024.

On November 5, 2024 The Council of the European Union, after long negotiations, announced that the EU’s Taxation Council has reached an agreement on the VAT in the Digital Age (ViDA) package.

On 17 July 2024, the Luxembourgish government announced a list of new measures designed to boost purchasing power, with effect from 1 January 2025. The announcements below are still in draft form and have not yet been definitively implemented.