Draft Law 8388
Draft Law 8388
On 11 December 2024, the Luxembourg Parliament passed draft law 8388, which introduces targeted measures to adapt the Luxembourg tax system to recent developments and clarify some of its provisions in order to improve tax certainty for taxpayers.
We present the changes to be introduced, with a focus on the measures applicable to corporate taxpayers. These include a simplification of the minimum net wealth tax (“NWT”) regime, a clarification of the tax treatment of share class redemptions and withdrawals as well as a new possibility to opt-out from the participation exemption regime.
While we do not detail other tax changes either impacting individual taxpayers (such as the introduction of a new temporary tax credit, the crédit d’impôt barème), or impacting corporate taxpayers but related to individuals (e.g. new electronic filing obligation applicable to the withholding tax return for director’s fees), we remain at your disposal to discuss these changes further with you.
We present the changes to be introduced, with a focus on the measures applicable to corporate taxpayers. These include a simplification of the minimum net wealth tax (“NWT”) regime, a clarification of the tax treatment of share class redemptions and withdrawals as well as a new possibility to opt-out from the participation exemption regime.
While we do not detail other tax changes either impacting individual taxpayers (such as the introduction of a new temporary tax credit, the crédit d’impôt barème), or impacting corporate taxpayers but related to individuals (e.g. new electronic filing obligation applicable to the withholding tax return for director’s fees), we remain at your disposal to discuss these changes further with you.