Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Corporate Tax
  • Type: Regulatory update
  • Date: 4/4/2014

Luxembourg - Tax reform by 2017; VAT rates increase 2% 

April 4:  The Luxembourg Finance Minister this week announced during the “state of the nation” address that:
  • The Luxembourg tax system will be “globally reformed” to be effective in beginning 2017.
  • There will not be a notional interest deduction regime (like the one in Belgium).
  • Steps will be taken to comply >with international standards on tax transparency and exchange of information (as reviewed by the OECD Global Forum).

VAT rate increases

Beginning in 2015, the value added tax (VAT) rates are to increase from current rates of:


  • 15%—increase to 17%
  • 12%—increase to 14%
  • 6%— increase to 8%

The “super-reduced” VAT rate of 3% for "basic necessity products" is to remain unchanged (although adjustments will apply for the rates imposed with respect to secondary dwellings and alcoholic beverages).


Read an April 2014 report [PDF 129 KB] prepared by the KPMG member firm in Luxembourg: Etat de la Nation 2014




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now