ey-global-tax-policy-outlook-for-2015

Luxembourg
Tax policy
Marc Schmitz
marc.schmitz@lu.ey.com
+352 42 124 7352
Tax controversy
John Hames
john.hames@lu.ey.com
+352 42 124 7256
1
| Tax rates (2014–15)
2014 2015 Percentage
change
Top corporate
income tax (CIT) rate
(national and local
average, if applicable)
Top individual income
tax rate (national
and local average, if
applicable)
29.22% 1 29.22% 2 —
The maximum
income tax rate
is 42.80% or
43.60%, 3 including
the contribution
of 7% or 9% to the
employment fund. 4
The maximum
income tax rate
is 42.80% or
43.60%, including
the contribution
of 7% or 9% to the
employment fund.
—
Standard value-added
tax (VAT) rate
15% 17% 5 13.3%
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1
2012. The rate consists of 21% of CIT with additional 7% of employment fund surcharge and 6.75% of
municipal business tax for companies located in Luxembourg City and which taxable income exceeds
EUR15,000. A CIT rate of 20% (plus surcharges) will be applicable on taxable income up to EUR15,000.
Since January 2013, all Luxembourg resident entities in corporate form and liable to CIT are subject to a
minimum corporate income tax regime.
2
2012.
3
4 Article 6 of the law of 30 June 1976 on creation of an employment fund, as amended; a further 0.5%
temporary budget balancing tax will be introduced as from 1.1.2015; see Section 2.4.
5 Article 6 of the draft Budget Law 2015.
Content provision date
21 November 2014
118 | The outlook for global tax policy in 2015