ARTICLE · 29 APRIL 2016

Luxembourg Tax Alert 2016-09

KPMG Luxembourg

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On 26 April 2016, Prime Minister Xavier Bettel delivered his State of the Nation speech, during which he highlighted some of the proposed changes to the Luxembourg tax system to be implemented in 2017.

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Sébastien Labbé

Frederic Scholtus

Flora Castellani

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New tax measures announced for the Luxembourg 2017 tax reform

On 26 April 2016, Prime Minister Xavier Bettel delivered his State of the Nation speech, during which he highlighted some of the proposed changes to the Luxembourg tax system to be implemented in 2017.

Most of these measures had already been announced by the government in February 2016, amongst which was the expected progressive decrease of the corporate income tax rate from 21% to 18% (thus leading to a global tax rate of appr. 26% in 2018). Other promising actions pledged by the government in February targeted not only the taxation of corporations, but also of individuals. For more details on the measures announced in February, see our previous newsletter here.

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