Luxembourg is dead
On 29 th of February 2016, the Luxembourg government announced a new set of tax measures to be implemented by 2017. The measures will amend the corporate and personal taxation regime. The following amendments in Luxembourg tax legislation may harm the status of Luxembourg as an attractive destination for high net worth individuals:
• The individual top income tax rate will be increased from 40% to 42%. Such amendment applies to individuals whose annual taxable income exceeds EUR 200.000.
• The withholding tax on interest for Luxembourg residents will be increased from 10% to 20 %.
• And they say the corporate tax will go down to 18%, a big lie! In practice, this 18% together with the ‘Impôt Commercial Communal and Contribution pour le Fonds d’Emploi’ will mean a tax decrease from 29,22% to 26,01% and this from 2018!