ATOZ Insights - April 2016

On 21 April 2016, less than one week before the traditional State of the Nation speech, new tax measures were announced by the Luxembourg Government as well as changes to the measures presented on 29 February 2016, as part of the 2017 tax reform. While the initial plan was to make the announcement during the State of the Nation speech taking place on 26 April 2016, the Government considered that it was high time to clarify the plan in order to respond to media speculation over the past months. Since the 29 February 2016 announcement, the 2017 tax reform has been THE topic of discussion, in Luxembourg and even beyond. In this edition of ATOZ Insights, we present the tax reform measures that were announced. Notably, they include the expected decrease of the corporate income tax rate. Additionally, Luxembourg has started implementing the EU Directive introducing an automatic exchange of information on tax rulings into Luxembourg law. This will elevate transparency in tax