The key amendments, that mostly concerns transfer pricing aspects, are the modifications made to the General Law on Taxation of the 22 May 1931 (“Abgabenordnung”) in the following paragraphs: §29c, §96a, §171 ,§165c & §249. These changes have been made with a view to simplifying and modernising the procedures applicable to taxpayers.
As already mentioned in our previous newsletters, we would like to remind you that for your non-resident employees, mandatory social security formalities must be completed with the authorities in the countries of residence concerned.
Understanding Taiwan’s Double Tax Agreements - A Foreign Entity invested in Taiwan may apply for withholding tax reclamation or tax relief if it is domiciled in a country that has a Double Tax Agreement with Taiwan.
On 14th May 2024, the EU Council adopted the EU Directive on Faster and Safer Relief of Excess Withholding Taxes (“FASTER”).
The Grand-Ducal Decree of 18 April 2024 modified the lists of Participating Jurisdictions and Reporting Jurisdictions for the CRS reporting year 2023.
Don't let the stress of tax returns overwhelm you. Leave your duties to us and enjoy the peace of mind you and your employees deserve.
La loi entrée en vigueur le 23 septembre 2023 modifie les dispositions de la loi du 21 avril 1928 - avec une période transitoire de 24 mois pour les associations sans but lucratif (a.s.b.l.), les associations reconnues d'utilité publique et les fondations.
Following the transposition into Luxembourg national law of the EU Directive 2022/2523 (the "Pillar 2 Law"), multinational enterprise (MNE) groups and significant large domestic groups are required to pay a minimum tax level of 15%. The Pillar 2 law came into effect for fiscal years starting on or after 31 December 2023.
Adjustment of tax brackets and tax credits - The legislator has adjusted the income tax scale by 4 indexed brackets, with effect from 1st January 2024. This will result in tax reduction for all taxpayers.
It's been five years since the last elections! The next social elections for companies with more than 15 employees will take place on 12 March 2024. While the process is set out in detail in a draft ministerial decree, it's important to remember that there are a lot of things that need to be done, requiring resources, time, and technical skills.
Recent decisions rendered by the Court of Justice of the European Union (“CJEU”) seem to have put an end to investigations of the European Commission (“EC”) into tax measures of the Member States based on the state aid rules. In particular, certain tax rulings granted by the Luxembourg tax authority (“LTA”) to Fiat, Engie and Amazon groups have been characterised by the EC in the past as conveying illegal selective tax advantages. Ultimately, CJEU decisions rendered in these cases found the tax rulings not to constitute unlawful state aid.
On 20 December 2023, draft law no. 8292 (“Draft Law”), transposing the EU Council Directive 2022/2523 of 14 December 2022 (“Pillar Two Directive”) into Luxembourg national law, was adopted by the Luxembourg Parliament (the “Law”). The Law aims to ensure that multinational enterprise (“MNE”) groups and significant large domestic groups pay a minimum level of tax of 15%. It incorporates amendments proposed by the Luxembourg Government in November 2023 in order to be aligned with administrative guidance issued by the OECD.
On 22 December, the Administration de l’enregistrement, des domaines et de la TVA (“AEDT”) has issued circular no 781-1 on VAT on directors’ fees.
The law of August 7, 2023 on non-profit associations and foundations was published in the Official Journal on September 19, 2023 and come into force since September 23, 2023. It applies to newly created non-profit organisations and foundations from this date.
On 12 September 2023, the European Commission adopted the proposal for a directive “Business in Europe: Framework for Income Taxation. BEFIT aims to introduce a single set of rules applicable to determine the corporate income tax base of multinational enterprises in all EU Member States as well as a simplified transfer pricing approach for assessing intercompany transactions. In the words of the EC, the Proposal is motivated by reduction of tax compliance costs for large, cross-border businesses in the European Union.
STATEC has confirmed, on Wednesday 30 August, the triggering of a new salary indexation as from 1 September 2023.