On 11 October 2017, Finance Minister Gramegna presented the 2018 budget to Parliament. The 2018 budget draft law includes some tax measures. An additional reform is in the pipeline, with some upcoming changes to the tax regime of stock option plans. ATOZ, Taxand Luxembourg, summarises the main tax changes to come in 2018.
Corporate income tax measures
Scope of investment tax credit extended to the acquisition of software
The draft law extends the scope of the investment tax credit (bonification pour investissement) to the acquisition of software. However, the benefit of the investment tax credit is subject to certain conditions and limitations:
Discover more: Luxembourg 2018 Budget: main tax measures
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During the presentation of the 2018 budget, a reform of the tax regime of stock-options or warrants has been announced, the aim of which would be to align the tax rate to half the global rate of income tax, as is currently the case for capital gains. It will be necessary to await the release of a draft law in this respect in order to assess the impact of the changes to be introduced to this tax regime.