On 17 July 2024, during a press conference, Finance Minister Roth presented a new tax package titled "Relief Package. Unity. Future. For Everyone". A draft law implementing this new tax package was presented to Parliament on the same day.
One objective announced by the Luxembourg government is to reduce the overall tax charge of individuals and a reform of the tax scale system for individual taxpayers is on the agenda in order to achieve this objective in the medium to long term. The draft law already takes a few steps in this direction.
In addition, the Luxembourg government is introducing measures aiming at strengthening Luxembourg's attractiveness, so that Luxembourg remains a suitable jurisdiction for workers, companies and investment funds. Attracting and retaining talent has been defined as one of the priorities of the new government, as reflected in its 2023-2028 coalition agreement. The draft law introduces targeted tax measures (impatriate regime, profit share regime) in that respect.
The draft law also implements the announced 1% corporate income tax rate cut and the subscription tax exemption for actively managed ETFs.
Hereafter, Tax Partner, Christina Leomy-Voigt, and Chief Knowledge Officer, Marie Bentley, present the main tax measures to be introduced.