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Luxembourg Budget Bill for 2022 Presented in Parliament — Orbitax Tax News & Alerts

On 13 October 2021, Luxembourg's Ministry of Finance presented the Budget Bill for 2022 (Bill 7878) in parliament. While there are no major tax changes, there are a few measures of note, including:

  • The introduction of lump-sum taxation with a rate of 10% on employment income received by temporary workers, subject to certain conditions including that payments do not exceed EUR 25 per hour;
  • The extension of the 15% income tax credit for previously unemployed individuals to 31 December 2023;
  • Amendments to clarify the definition of the expression "consolidated group for financial accounting purposes" in relation to the EU Anti-Tax Avoidance Directive (ATAD) interest limitation rules, providing that consolidated group for financial accounting purposes is a group composed of all the entities that are fully integrated into consolidated financial statements prepared in accordance with International Financial Reporting Standards or the national financial reporting standards of a Member State;
  • Amendments to exclude UK companies from tax provisions concerning EU/EEA Member State as a result of Brexit, where needed, including in relation to certain provisions governing the implementation of the EU Parent-Subsidiary Directive.

Additional details will be published once available.