Luxembourg’s finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules. Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018.
Luxembourg’s finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules.
Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018.
In addition, the corporate tax rate for annual income of small businesses which do not exceed $ 28,000, will be reduced to 15 percent.
Also Gramegna announced the adjustment of the proposed restrictions on transfer in front of past losses of the company. Initial proposals would allow loss carry forward for 10 years and used to compensate for a maximum of 80 percent of the profits. However, Gramegna informed Parliament that the losses will be “more strictly controlled” in 2017. And under the current rules the losses can be carried forward indefinitely and used to offset 100 percent of the profits.
Luxembourg tax credit for investments will be improved. Under current rules, there is a 12 percent tax credit for investments depreciable tangible assets. Under the new proposals, the tax credit will increase to 13 percent.
The Minister of Finance said that the working groups were created to study a range of issues affecting the competitiveness of start-ups and small and medium-sized enterprises in Luxembourg.
Also Gramegna said: “The government will closely monitor international developments and will consider the adjustments that will be needed for the business.”