An overview by ATOZ Tax Advisers, Taxand Luxembourg
On 19 December 2023, the Luxembourg Parliament passed a law that signifies a significant overhaul of the investment tax credit framework, set to take effect from the 2024 tax year. This legislation not only incorporates the previously agreed-upon modifications to the investment tax credit from the tripartite agreement of 28 September 2022, but it also comprehensively revamps the existing system.
The key changes involve an increase in the rates of the global investment tax credit. Additionally, the law replaces the current additional investment tax credit with an extra tax credit specifically for investments and operating expenses related to digital transformation, ecological initiatives, and energy transition. Furthermore, a new certification system is introduced to verify the nature and authenticity of such investments and operating expenses.
In this article, Hugues Henaff from ATOZ Tax Advisers, provides an overview of the key aspects of the new framework.
Continue reading here.
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