Luxembourg’s new Government has announced the tax measures until 2028 as part of its coalition agreement. Amongst others, some of the key tax measures are the following:
- Progressive reduction of corporate tax rates to bring it closer to the OECD’s average, as a medium-term objective
- Enhancement of Luxembourg tax treaty network
- Continue the opposition to a financial transaction tax at the EU level
- Potential reduction of the subscription tax for certain actively managed UCITS-ETF and certain funds investing in sustainable activities
- Reduction of effective personal income tax rates considering the latest salary indexations
- Reform of the tax classes system, introducing tax reductions for certain taxpayers in the short term and simplification measures
- Confirmation that no inheritance tax in direct line and no net wealth tax will be introduced for individuals
