Tax news 2015

BEFORE 2015 NEW MEASURES AS OF
1 JANUARY 2015
CORPORATE INCOME TAX

Tax holidays

Abolition of the right of the Ministry of Finance to grant tax holidays to certain persons establishing their fiscal residence in Luxembourg

Minimum corporate income tax

EUR 3.210 for companies if more than 90% of balance sheet are financial assets

EUR 3.210 for companies if more than 90% of balance sheet are financial assets and they exceed EUR 350.000 

EUR 535 to 21.400 for other companies

ADVANCE TAX AGREEMENTS

Advance Tax Agreement procedure

ATAs are approved by tax inspector based on an administrative practice.

Introduction of a ATA Commission and legal formalization of the process.

ATAs are valid for a maximum period of 5 years

Administrative fee from EUR 3.000 to EUR 10.000

Annual publication of ATA summaries on a no name basis

NET WEALTH TAX

Computation of the NWT basis

Every 3 years

Yearly

NWT reduction

Reduction in year N for NWT limited to CIT due for year N

Reduction in year N for NWT limited to CIT due for year N-1

VAT

Increase of VAT rates

Standard rate: 15%

Intermediary rate: 12%

Reduced rate: 6%

Standard Rate: 17%

Intermediary rate: 14%

Reduced rate: 8%

Super-reduced rate unchanged: 3%

Place of taxation of B2C e-commerce services 

Place of taxation of services was the place of establishment of the service provider

Place of taxation is the EU Member State where the customer is established / domiciled

New reimbursement procedure for VAT receivables

Refund of the VAT on an annual basis, once the yearly VAT return has been filed and assessed

Possible periodic VAT refunds including default interest payments in favour of the VATpayers with respect to their legitimate VAT recovery claims

INDIVIDUAL TAX LAW

Budget balancing tax

Introduction of a 0,5% tax on professional income (in principle temporary)