An overview by ATOZ Tax Advisers, Taxand Luxembourg
A major reform of the current investment tax credit framework in Luxembourg was announced last week, with proposed changes to come into effect from the 2024 tax year. A draft law was presented to parliament on the 13 July which not only implements the investment tax credit modifications agreed upon in the tripartite agreement of 28 September 2022, but also completely reforms the current regime.
The new framework will include an increase in the rates of the global investment tax credit. The current additional investment tax credit will also be replaced by an additional tax credit for investments and operating expenses linked to the digital transformation or the ecological and energy transition, and a new system will be introduced to certify the nature and reality of such investments and operating expenses.
Our member firm in Luxembourg, ATOZ Tax Advisers, provides an overview of the key aspects of the new framework, which might evolve over the legislative process.
Read more here.
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