ARTICLE · 16 JANUARY 2013

New Tax Measures

ELVINGER HOSS PRUSSEN, société anonyme

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On 21 December 2012, the Luxembourg Parliament adopted a law (the <strong>Law</strong>) which contains new tax measures applicable to both individuals and companies as from 1 January 2013. The Law also includes some local VAT measures applicable as of 1 January 2013. This News Flash summarises the most important direct and indirect tax measures included in the Law

LuxembourgTax

Elvinger Hoss Prussen

On 21 December 2012, the Luxembourg Parliament adopted a law (the Law) which contains new tax measures applicable to both individuals and companies as from 1 January 2013. The Law also includes some local VAT measures applicable as of 1 January 2013. This News Flash summarises the most important direct and indirect tax measures included in the Law

A. New tax measures for companies

1. Increase of the solidarity surcharge (contribution au fonds pour l'emploi) from 5% to 7%

The solidarity surcharge rises from 5 to 7% for corporations, which increases the corporate income tax. The overall corporation taxes for corporations established in the city of Luxembourg increases from 28.80% to 29.22% (i.e. 21% corporate income tax plus 7% solidarity surcharge, plus a 6.75% municipal business tax in the city of Luxembourg).

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