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

Luxembourg
2.4 Tax policy outlook for 2015 — detail 2.5 Fiscal stimulus in 2015
Corporate income taxes
• Corporate income tax rates should remain unchanged in
2015. However, as announced by the Minister of Finance,
tax evasion will increasingly be combatted.
• A provision dedicated to the tax ruling practice will be
6 2.6 Political landscape
formalizing the existing administrative practice and thus
providing the taxpayer with adequate up-front legal security.
The delivery of such binding advance decision will trigger
depending on the type of binding advance decision obtained.
•
entirely dedicated to the arm’s-length principle, 7 under
transactions that do not meet the arm’s length principle will
Tax policy leaders
be determined according to normal market conditions and
taxed accordingly. Additionally, the taxpayer’s obligation to • Xavier Bettel, Prime Minister
be able to justify the data contained in his or her tax returns
with appropriate information and documentation is formally
extended to transfer pricing matters.
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Taxes on wages and employment
• While the top marginal income tax rate should remain
category of income realized by individuals will be
introduced. 8
VAT, GST and sales taxes
• The current VAT rates will be increased by 2 percentage
points, except for the super-reduced rate of 3%. As from
1 January 2015, VAT will thus apply at a rate of 17%, 14%,
8% or 3%.
• The super-reduced rate of 3% will continue to apply as in
the past, except for the delivery of alcoholic beverages in
catering services and the acquisition of dwellings intended
for rental.
Package for the Future.
8 Article 7 of the draft Budget Law 2015.
6
“Package for the Future.” The 258 measures of the Package for the Future
aim at saving more than EUR1b in 2018 and thus to rebalance the public
7
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2.7 Current tax policy and tax administration
leaders
•
•
•
(VAT and Customs)
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