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Luxembourg's 2020 Budget Approved By Parliament

Tuesday, December 31, 2019

On December 19, 2019, Luxembourg's Chamber of Deputies approved the Government's Budget for 2020, which among other measures includes important changes to the validity of advanced tax rulings.

Under the Budget law, all advanced tax rulings issued to companies and individuals prior to January 1, 2015, when the tax ruling procedure was codified, are cancelled. This measure is effective from the end of the 2019 tax year.

The other main tax changes in the 2020 Budget include:

  • The extension of the scope of the three percent super-reduced value-added tax rate to services provided by writers, composers and performers in the practice of their profession;
  • The extension of the tax credit available to companies hiring unemployed workers until December 31, 2021; and
  • Changes to legislation governing the setting of excise tax rates allowing the Government more flexibility to set rates according to its environmental objectives.