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New Tax Measures Introduced In 2013 Budget
During a speech before the Parliament when presenting the budget 2013, Prime Minister Luc Frieden announced tax measures which are to be introduced in 2013. The measures will be part of a draft law which is expected to be published shortly. Taxand Luxembourg provides an overview on the two main tax measures affecting corporations.
1. Introduction of a minimum taxation for companies
This will vary between EUR 500 (for small enterprises) and 10,000 EUR (for companies with more than EUR 10M). It is expected that this minimum taxation will apply to all non-SOPARFIs so that the minimum taxation currently in place for SOPARFIs (EUR 1,500) will remain applicable.
2. Increase of the solidarity surcharge
The solidarity surcharge will be increased by 2% for both individuals and companies as of 1st January 2013. For companies, the contribution will be increased from 5% to 7%, which will bring the global income tax rate from 28.80% to 29.22%.
It will be necessary to await the publication of these measures in order to be in a position to analyse their impact on taxpaying corporations in Luxembourg. What is sure at the moment is that these measures aim at increasing the state revenues to restore the budget and will therefore mean an increase, modest in most cases, of tax costs for some taxpayers.