Luxembourg: Bill including tax measures benefiting both individuals and companies presented to Parliament
Bill 8414, which includes proposed tax measures benefiting both individuals and companies, was submitted to Parliament
Bill including tax measures benefiting both individuals and companies
Bill 8414, which includes the following proposed tax measures benefiting both individuals and companies, was submitted to the Parliament on July 17, 2024:
Individual taxation
- Adaptation of personal income tax brackets and relief for tax class 1A
- Changes to the participative premium
- Changes to the impatriate regime
- New bonus for young employees
- New tax credit for cross-border workers
Corporate taxation
- Reduction of the corporate income tax rate by 1% as of tax year 2025
- Exemption from subscription tax for actively managed undertakings for collective investment in transferable securities exchange traded funds (UCITS ETFs)
- Amendments for family wealth management companies (société de gestion de patrimoine familiale or SPF)
The bill will now go through the usual legislative process and may be subject to further amendments.
KPMG observation
Most of these tax measures were already part of the 2023-2028 coalition agreement. However, there was one new measure the Finance Minister announced that was not included in the bill concerning full deductibility of mortgage interest on loans financing primary residences for tax years 2024 and 2025.
Read a July 2024 report prepared by the KPMG member firm in Luxembourg
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