Luxembourg: Tax measures in 2027 budget bill
Including decrease in corporate income tax rate, repeal of loss carry-forward limitation, and increase in investment tax credit
The Luxembourg 2027 Budget Bill, which was published on October 7, 2026, includes the following proposed corporate tax measures, proposed to be effective from tax year 2027:
- Decrease in corporate income tax rate from 14% to 13% for taxable income up to €200,000, and from 16% to 15% for taxable income above €250,000 (from tax year 2027)
- Repeal of 17-year loss carry-forward limitation (from tax year 2027)
- Increase in investment tax credit for investments and expenses related to digital transformation and ecological/energy transition from 18% to 21%
- Extension of 10% tax credit for hiring unemployed people by three years, to December 31, 2029
The budget bill also includes proposed tax measures relating to individual taxation and housing.
Read an October 2026 report prepared by the KPMG member firm in Luxembourg