New Luxembourg Government announces main aspects of its fiscal policy
On 2 December 2013, the newly composed Luxembourg government published its coalition program including components of its future fiscal policy. The intention of the new Luxembourg government is oriented towards structural reforms in order to re-balance public finances during the forthcoming parliamentary term.
This will be achieved first through a detailed screening of public expenses, second through specific measures supporting economic growth, and finally via a number of modifications to the current tax system.
The Government program announces stability as a key principle of its future tax policy and aims to attract new businesses and corporate headquarters to Luxembourg as well as allowing existing entrepreneurs to continue to develop their economic activities. Amongst other an amendement of the participation exemption regime and the introduction of a notional interest deduction are mentioned.
Further details announced are summarized in the attached tax alert issued by EY Luxembourg. We will continue to inform you as soon as more details become available.
Do not hesitate to get in touch with the contact persons listed here or with your regular contact at EY Tax Consultants for more information or assistance in this matter.