New Minimum Tax Set to Be Approved Soon in Luxembourg
Luxembourg - December 20, 2023
The parliament is set to vote on a tax scale adjustment law, with the Finance Committee recently presenting its report.
Simultaneously, representatives are expected to vote next week on a bill aimed at setting a minimum tax rate of 15% on large corporations. This comes in line with the European directive based on the OECD initiative, which must be implemented by December 31. This directive specifically targets companies with an annual turnover of €750 million or more.
The Minister of Finance stated, "We have a group of large corporations with a turnover of €750 million in Luxembourg that will be subject to a 15% minimum tax. This is crucial for the predictability of tax arrangements and transparency to ensure our country's competitiveness."
This law aligns with the consensus of nearly all European Union countries. Only a few countries like Portugal, Spain, or Poland remain without plans to implement this directive this year.
Next week, the report on this law is slated for examination in the Finance Committee, and a vote is scheduled in the parliament. Concurrently, the value-added tax (VAT) will increase by one percent, reverting the tax cuts introduced by the previous government. For instance, the VAT on standard services will rise from 16% this year to 17% next year.