Luxembourg Budget 2015 – we mean business now, finally, at last
On October 15th, 2014 the Minister for Finance announced the Luxembourg Budget 2015. The announcement followed the presentation made the day before by the Prime Minister Xavier Bettel who presented a policy statement entitled “Package for the Future” which provides some overall public finances policy statements for the period 2015 – 2018.
For international business operators using Luxembourg, the package of measures will be welcomed. There is finally, at last, a firm committment by the Luxembourg government to adress the recurring public deficits (since 2008) in order to contain the public debt at internationally very low level (below 30% of GDP). The adjustments that were much needed consist in a mix of reduction of spendings impacting individuals as well as an increase of the VAT standard rate from 15% to 17%, still preserving Luxembourg enviable position of the EU member States with the lowest VAT rate. An additional package of 250 measures aiming at improving over time the financial situation of Luxembourg will be gradually implemented over the next three years.
Corporate taxpayers will not be impacted by the measures, since the corporation tax rate and the rules for computing the tax base will remain unchanged. The committment of the Luxembourg government to preserving its tax ruling policy also remains unaffected as is its commitment to apply the OECD transfer pricing rules.
Read the full article on www.bsp.lu