Trésorier/Treasurer magazine - n°80 - 1er trimestre 2013 - (Page 6)

LuxNews Tax News Amended 2013 Budget proposals presented In November 2012, a draft law introducing new tax measures for 2013 was submitted to the Luxembourg Parliament. Business taxation l A new minimum tax for all taxpayers subject to corporate income tax (except certain holding companies) will be introduced. The tax will range from €500 to €20,000 (excluding the contribution to the unemployment fund), depending on the amount of the balance sheet total as at financial year’s closing date. The marginal amount of minimum tax will be due by taxpayers with a balance sheet total exceeding €20 million. This minimum tax will also apply to non-resident taxpayers who own assets in Luxembourg that are not attributable to a Luxembourg permanent establishment (e.g., a foreign company owning Luxembourg real estate). l The minimum tax for taxpayers which are subject to corporate income tax and who are not required to operate under a business license and whose financial assets exceed 90% of their total assets (e.g., SOPARFIs) will be increased from €1,500 to €3,000 (excluding the contribution to the unemployment fund). l The contribution to the unemployment fund due from companies subject to corporate tax will be increased from 5 to 7%, leading to an effective tax rate (for companies located in Luxembourg City) to 29.22%, for taxable income exceeding €15,000 (instead 28.8% in 2012). l Investment tax credit: the allocable rates for “complementary” investments will be reduced to 12% (instead 13%) and for “global” investments exceeding €150.000 to 2% (instead of 3%) l The beneficial net wealth tax reduction will be determined based on the maximum amount of corporate income tax due (i.e., including contribution to the unemployment fund, but after deduction of any domestic tax credits). Individual taxation l A new tax bracket will be added, applying as from an annual taxable income exceeding €100,000 for taxpayers in tax class 1 (single individuals) and €200,000 for taxpayers in tax class 2 (married couples or partners jointly taxable), taxed at a base rate of 40% (i.e., an increase of 1% to 40%) l The contribution to the unemployment fund will increase from 4% to 7% and from 6% to 9% on income exceeding €150,000 for taxpayers in tax class 1 and 1a (single, separated or divorced individuals with children) and €300,000 for taxpayers in tax class 2 l The new maximum income tax rate will be therefore 42.80% or 43.60% including the contribution of 7% or 9% to the unemployment fund l The deduction for debt interest on a consumer loan or bank account will be reduced by 50%, and will be limited to €336 per person in the taxpayer’s household l The minimum lump-sum deduction of €396 (first four distance units) for commuting expenses between home and place of work will be abolished. However, commuting expenses exceeding four distance units up to a maximum of 30 units remain deductible and therefore limited to €2,574 per year (currently €2,970) l The VAT refund will be reduced to €50,000 (instead of €60,000) for eligible investments in residential property”. Contact: John Hames, Tax Partner, John.Hames@lu.ey.com Sylvie Leick, Executive Director, Sylvie.Leick@lu.ey.com

Table des matières de la publication Trésorier/Treasurer magazine - n°80 - 1er trimestre 2013

Couverture
EDITORIAL
SOMMAIRE
FINANCIAL HIGHLIGHTS
INTERVIEW - Jimmy Doyle
FOCUS
FORUM OF ADVERTISERS
CORPORATE FINANCE
15 MINUTES WITH - Philippe Debatty, Fuchs & Associés Finance
TREASURERS' ASSOCIATIONS
NEWS
The Financial Risk Observatory

Trésorier/Treasurer magazine - n°80 - 1er trimestre 2013