ATOZ Insights - July 2016

It would seem that governments at all levels want to pass legislation before breaking for the summer holidays!

At local level, a draft law introducing the first tax measure announced by the Luxembourg Government at the beginning of this year has already become law and is now effective. This law deals with the temporary favourable individual tax regime applicable to certain gains realised on the sale of real estate assets. The draft law introducing the remaining 2017 tax reform measures has been adopted by the Government and should be published in the coming weeks. Over the month of June, the Luxembourg tax authorities released 3 different circulars to adapt previously released circulars to recent changes in Net Wealth Tax. In  addition, a draft law was presented to Parliament to anticipate an important change to the US-Luxembourg tax treaty. This draft law is expected to have a significant impact on US branch structures. At local level as well, the Luxembourg