On 2 October 2012, Luc Frieden, the Finance Minister, submitted
the 2013 budget bill to the Parliament.
In his speech, M. Frieden announced limited austerity measures
in order to address the increasing hardship economic situation in
Europe. These measures complement those presented in 11 May 2012 by
the Prime Minister Jean-Claude Juncker in his annual «State
of the Nation» speech.
The most salient envisioned tax measures may be
summarized as follows:
- Increase of the solidarity surcharge for individuals from 4% to
6% (high net worth individuals may be subject to a 8%
surcharge);
- Increase of the solidarity surcharge from 5 % to 7% for
corporations, the aggregate maximum corporate income tax rate would
therefore increase from 28.80% to 29.22% in Luxembourg-city (i.e.
22.47% corporate income tax including the 7% surcharge tax with the
6.75% municipal business tax) ;
