Luxembourg tax updates

Abstract

Abstract This article aims at providing a holistic overview of Luxembourg’s tax framework applicable for individuals. Specifically, this article is divided into four sections. In the ‘Overview of the tax framework for individuals’ section, an overview of the Luxembourg income tax rules for each category of income will be given, after having defined the tax residency concept under Luxembourg tax law. We will also cover in the ‘Overview of the tax framework for individuals’ section other indirect taxes, such as gift and inheritance taxes. In the ‘Impatriate tax regime’ section, we will address the conditions required to benefit from the specific tax regime for qualifying international employees that have been introduced into Luxembourg tax lax. The ‘Profit-sharing premium’ section will address the profit-sharing bonus mechanism for employees, introduced to enhance the country’s attractiveness. Finally, the specific tax regime for carried interest, which has been implemented by the Law of 12 July 2013 in Luxembourg, will be covered.