Tax Relief Package 8414
Tax Relief Package 8414
On 11 December 2024, the Luxembourg Parliament passed draft law 8414 (the so-called tax relief package), which introduces tax cuts for both businesses and individuals to improve Luxembourg competitiveness, boost the Luxembourg economy and strengthen the purchasing power of citizens.
We present the changes to be introduced, with a focus on the measures relevant for companies and investment funds. These include a 1% cut of the corporate income tax (“CIT”) rate, a new subscription tax exemption for actively managed UCITS ETFs as well as amendments to the regime of private wealth management companies (SPF).
While we do not detail the changes impacting individual taxpayers (such as the amendments of the employee profit-share regime and of the impatriate regime, the new tax credit for cross-border workers or the adaptation of the personal income tax brackets), 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 relevant for companies and investment funds. These include a 1% cut of the corporate income tax (“CIT”) rate, a new subscription tax exemption for actively managed UCITS ETFs as well as amendments to the regime of private wealth management companies (SPF).
While we do not detail the changes impacting individual taxpayers (such as the amendments of the employee profit-share regime and of the impatriate regime, the new tax credit for cross-border workers or the adaptation of the personal income tax brackets), we remain at your disposal to discuss these changes further with you.