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Additional Tax Reform Measures for 2017 Submitted to Luxembourg Parliament — Orbitax Tax News & Alerts

Additional tax reform measures for 2017 were submitted to the Luxembourg parliament on 12 October 2016. The measures include:

  • The addition of Article 56bis to the Luxembourg Income Tax Law, which provides rules based on the OECD guidelines for the determination of the arm's length price for all transactions;
  • An increase in the value added tax (VAT) registration threshold from EUR 25,000 to EUR 30,000 in annual turnover for small enterprises;
  • The abolishment of the guarantee for the payment of taxes for new taxpayers that move to Luxembourg from an EU/EEA country without owning Luxembourg real estate; and
  • The expansion of the real estate tax exemption for Luxembourg entities engaged in charitable activities to non-resident charitable entities for their use of Luxembourg real estate.

As with the other tax reform measures ({News-2016-08-02/P/2- previous coverage}), the additional measures will generally apply from 1 January 2017.