Tax Changes For 2018 Disclosed In The New Budget Bill

On 11 October 2017, and for the last time before next year's parliamentary elections, the Luxembourg Finance Minister presented the budget bill for 2018 ("Bill") N° 7200 to Parliament (Chambre des Députés).

The main tax-related provisions of the Bill are laid out below in detail and include inter alia:

• changes to the tax treatment of capital gains in the case of business restructurings;
• improvements to the investment tax credit system;
• extension of the VAT exemption to the management of collective internal funds held by a life-insurance undertaking;
• introduction of 3 assessment options for resident spouses/partners;
• extension of the inheritance tax exemption for spouses/partners without common descendants;