The Luxembourg Minister of Finance presented a tax bill to Luxembourg parliament on 13 October 2015 and the draft state budget for the year 2016 on 14 October 2015. For corporate taxpayers the most notable proposals are the abolishment of the Luxembourg IP regime with a grandfathering period of five years and the introduction of a reduced net wealth tax rate for net wealth in excess of €500m. In addition the corporate minimum tax rules will change. In his speech the Minister of Finance also mentioned again the planned tax reform for 2017 that should result in lower tax rates and a broadening of the tax base. No further details for the tax reform 2017 are available at the moment.
Abolishment and grandfathering of the Luxembourg IP regime: Following up on BEPS Action 5 which sets out the modified nexus approach to be applied...
