• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 2/24/2014

Luxembourg - New guidance concerning “impatriate” workers  

February 24:  Luxembourg’s tax authorities issued guidance—L.I.R. n° 95/2—amending the tax rules that apply for foreigners working in Luxembourg (i.e., “impatriate” workers).

The scope of the guidance is expanded, so that the tax regime now applies to impatriate workers in Luxembourg who were either hired abroad by a Luxembourg company or by a foreign company located in the European Economic Area.

The guidance applies retroactively as from 1 January 2014. Specific tax provisions apply in Luxembourg to impatriate workers relocating to Luxembourg as of 1 January 2014—e.g., provisions aim at exempting certain costs and expenses in relation to the workers’ assignment to work in Luxembourg.

Read a February 2014 report [PDF 129 KB] prepared by the KPMG member firm in Luxembourg: New tax circular on impatriate workers

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