Céline Grignet’s Post

📍On 17 July 2024, the Luxembourg government submitted a draft Law (n°8414, hereafter “the draft Law”) to Parliament, introducing several tax measures for individual taxpayers and companies, including a reduction of the corporate income tax rate from 17 to 16% as from fiscal year 2025. 📈 📍The aim of these measures is to strengthen the purchasing power of Luxembourg residents and cross-border employees, as well as the competitiveness of Luxembourg. 🇱🇺 More details here: https://lnkd.in/gKCS57tP

Following last month’s Budget, there is now more clarity on the detail of how the new tax regime will work once the existing tax regime for non-UK domiciled individuals (non-doms) is abolished from 6 April 2025. Here, Tax Partner Joseph Adunse explores the key points and how individuals will be affected. #Budget2024 #Tax

📊 Big Tax Changes in Luxembourg: What You Need to Know 💡   On 17 July 2024, the Luxembourg government submitted a new tax draft law designed to address inflation, enhance household purchasing power, and strengthen the country’s global competitiveness. These proposed measures introduce significant changes for both individuals and companies, focusing on inclusivity and economic dynamism. 📉 1% CIT Rate Cut: Starting 2025, the corporate income tax rate will decrease from 17% to 16%, reducing the aggregate tax rate in Luxembourg City from 24.94% to 23.87%. 💶 75% Bonus Tax Exemption: Employees under 30 with first-job bonuses may benefit from partial exemptions of up to €5,000.  👩👧 40% Increase in Single-Parent Tax Credits: Rising to €3,504, these credits aim to provide better support for families. As the year comes to a close, the Luxembourg parliament approved the “Entlaaschtungs-Pak”, a comprehensive suite of reforms designed to balance economic competitiveness with societal well-being, which solidifies the country’s reputation as a forward-thinking jurisdiction in tax policy. These measures reflect a deliberate effort to enhance the fiscal environment for residents and cross-border employees, while simultaneously creating a fertile ground for business growth and innovation. Read PwC Luxembourg’s explainer for new insights: https://lnkd.in/einqVJ_M  https://lnkd.in/egeUJaBn    #Tax #Luxembourg #CIT #Bonuses #PwC 

The latest individual and employment tax developments in Luxembourg.

⚡ New Tax Regulations Are Being Discussed in the Grand National Assembly of Turkey Committee - Discussions of the Bill on Amendments to the Tax Laws and Certain Laws, including the increase of the minimum pension to 12 thousand 500 liras, have started in the Grand National Assembly of Turkey Planning and Budget Committee.

Have you heard about the new tax measures expected for next year in Luxembourg? 🤔 Lower tax brackets, evolving inpatriate regime and profit sharing scheme, new tax credits in place, a tax beneficial premium for employees aged 30 max, and more... Check this out if you want more details 👇

The latest individual and employment tax developments in Luxembourg

The taxes imposed under Finance Act, 2024, with effect from July 1, in the case of salary income [as defined in Section 12(2) of the Income Tax Ordinance, 2001] for middle-level employees for withholding of tax on average monthly basis are extortionist, rather confiscatory, discriminatory and expropriatory. Such taxation is undoubtedly unconstitutional in terms of Articles 4, 14, 18, 23 and 25 of the constitution, especially with the extra burden of indirect taxes, rising cost of utilities and double-digit inflation. https://lnkd.in/ddPq-_8v

Very welcome small tweaks to personal income tax regulation Luxembourg proposes various measures affecting individual and corporate tax The Luxembourg government recently submitted a draft law to Parliament containing certain individual income tax, corporate income tax and fund taxation measures. The proposed changes for individual taxpayers include a number of measures to alleviate the tax burden on households and to increase the attractiveness of Luxembourg as a workplace.   Executive summary The Luxembourg government recently submitted a draft law (Draft Law) to Parliament containing a variety of tax measures. Overall, the proposed changes aim to alleviate the tax burden on households and enhance Luxembourg's appeal as a work and investment location, with provisions for both corporate and individual taxpayers. Key suggested amendments affecting individual taxpayers and employers include the expansion of the employee profit-sharing regime (prime participative in French), improvements to the expatriate regime, the introduction of a bonus for certain young employees (young employee bonus) and a new tax credit for cross-border workers, as well as an adjustment to the income tax brackets. Most of the changes will apply as from tax year 2025. https://lnkd.in/eePDFEAc