Luxembourg’s Tax Changes for 2018 Disclosed in the New Budget Bill

By Eric Fort | Bruno Gasparotto | Alain Goebel  |Thierry Lesage | Jan Neugebauer | Arendt & Medernach LLC

On 11 October 2017, and the last time before next year’s parliamentary elections, the current Luxembourg Finance Minister presented the budget law for 2018 to the Parliament (Chambre des Députés).

The main tax-related provisions of the Bill of Law N° 7200 (“Bill”) as laid out below in more detail include inter alia:

• Changes to the capital gains tax treatment of business restructurings;
• Improvements to the investment tax credit system;
• VAT;
• Introduction of 3 assessment options for resident spouses/partners;
• Extension of the inheritance tax exemption to spouses/partners without common descendants; and 
• Amendment to the procedure of exchange of information upon request in tax matters further to the Court of Justice of the European Union (“CJEU”) Berlioz case law (C-682/15).

As a reminder, a summary of the newly proposed IP Box regime is included as well in this document. Click here to read the full Newsflash and have more details on the topics mentioned above

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