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ARTICLE · 22 FEBRUARY 2024

Luxembourg "Still In A Learning Phase" On Pillar 2

Loyens & Loeff
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In late 2023, Luxembourg entered a new tax era with the transposition of the European Pillar 2 directive on 20 December. The new rules, in force since 1 January 2024...

LuxembourgTax
Peter Moons
Peter Moons
Pierre-Antoine Klethi
Pierre-Antoine Klethi

Since 1 January 2024, multinationals have been subject to a minimum tax of 15% on their profits. According to our team, learning the new rules is proving demanding for the relevant actors in Luxembourg, with some investment funds in particular encountering difficulties.

In late 2023, Luxembourg entered a new tax era with the transposition of the European Pillar 2 directive on 20 December. The new rules, in force since 1 January 2024, aim to ensure that multinationals pay a minimum tax rate of 15% in each jurisdiction in which they operate.

Pierre-Antoine Klethi, tax lawyer in our Luxembourg office, explains what is at stake: "Pillar 2 was the main development in 2023 and its implementation will keep us busy in 2024. The directive came with the promise of rebalancing international tax practice, but also with a host of difficulties."

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