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Luxembourg Prime Minister Proposes Corporate Tax Rate Reduction in State of the Nation Address

13 June 2024

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Proposed Changes

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Luxembourg

The Luxembourg government has published the State of the Nation Address delivered by Prime Minister Luc Frieden on 11 June 2024. With regard to taxation, one of the main proposed measures is a reduction in the corporate tax rate from 17% to 16% with effect from 1 January 2025. Other proposed measures include the introduction of a new "single tax class" for the benefit of single parents by 2026 along with new tax relief for single parents from 1 January 2025, as well as additional indexation of the income tax brackets.