ARTICLE · 03 JANUARY 2024

Luxembourg Corner

ELVINGER HOSS PRUSSEN, société anonyme

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On 23 November 2023, the new government has been granted the parliament's confidence following the presentation of the coalition programme.

European UnionTax

Elvinger Hoss Prussen

1. Legislation

New government's programme approved by the parliament

On 23 November 2023, the new government has been granted the parliament's confidence following the presentation of the coalition programme.

Please check out our newsflash for more information in this respect.

Law adjusting the personal income tax scale voted

On 20 December 2023, the Luxembourg Parliament adopted Bill 8343, which adjusts the personal income tax brackets by an equivalent of 4 index tranches starting from 1 January 2024 ("Law").

The Law implements one of the measures announced in the new government's coalition agreement that aim at supporting households.

In a nutshell, according to the Law, the lowest rate of 8% will apply to the income bracket between EUR 12,438 and EUR 14,508 (the current bracket being between EUR 11,266 and EUR 13,173). The next bracket taxed at 9% will therefore start at EUR 14,508 (up to EUR 16,578) instead of EUR 13,173 today and so on. The

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