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  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/5/2012

Luxembourg - Budget 2013 includes tax measures  

October 5:  The Luxembourg Budget 2013 was presented on 2 October 2012, and includes several tax-related measures.

Details of the tax measures will be included in a new draft law to be submitted to Parliament and, subject to enactment by Parliament, will be effective 1 January 2013.


Among the tax measures are:


  • A 2% increase to the unemployment surcharge (known as the “solidarity tax”)
  • For corporations subject to corporate income tax, the solidarity tax would increase from 5% to 7%, so that the aggregate 2013 tax rate applicable to Luxembourg corporations would increase from 28.80% to 29.22% (i.e. 22.47% corporate income tax that includes the 7% surcharge tax, plus 6.75% municipal business tax applicable to the municipality of Luxembourg)
  • For individuals, the unemployment surcharge would increase from the current rate of 4% to 6%
  • The introduction of a minimum corporate tax; the new tax would range from €500 for small corporations and €10,000 for corporations having a balance sheet amount total exceeding €10 million
  • Broadening of the corporate tax base
  • A reduction in the deduction for “debit interest”
  • A reduction for travel expense lump sum deductions
  • An increase in excise duties on tobacco and petroleum products

Read an October 2012 report [PDF 46 KB] prepared by the KPMG member firm in Luxembourg: Luxembourg Budget 2013




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