Le magazine du trésorier - n°71 - 3ème trimestre 2010 - (Page 4)
LUXEMBOURG INTRODUCING NEW TAX MEASURES
Luxembourg has announced a number of structural measures aiming to rebalance the State budget over the coming years, but also to promote certain industry sectors to sustain economical growth: BUSINESS TAXATION Effective for the tax year 2011, the following measures are proposed to be introduced: account plan in captions 23, 50 or 51, will be subject to a minimum tax of EUR 1.500, to be increased by the 5% unemployment surcharge, thus leading to EUR 1.575. Companies that are in a tax consolidation will suffer this tax only once at the level of the top consolidating entity. The rules regarding available tax credits (e.g. withholding taxes and other tax credits) remain applicable. It is understood this new tax will not impact losses carried forward. ronment and rational usage of energy may elect for a special amortization, for tax purposes, of 60% of the depreciation base. This rate is proposed to be increased to 80%, in order to further promote such type of investments.
Increase of investment tax credit
Businesses making eligible investments in certain fixed assets, other than land and buildings, may claim a tax credit, for which the allocable rates will be increased from 12 to 13% for the so-called “complementary” investment and for the so-called “global” investment, the rates will be increased from 6 to 7% up to the eligible investment amount of EUR 150.000, and from 2 to 3% on the exceeding amount.
Increase of contribution to unemployment fund and introduction of a new crisis tax
The current contribution to the unemployment fund, due by companies subject to corporate tax, with be increased from 4 to 5%, leading a an effective tax rate (for companies located in the Luxembourg City area) to 28,80%, if the taxable income exceeds EUR 15.000 (and assuming the City of Luxembourg will remain the current rate, since Municipalities have authority to determine the municipal business rate).
Limitation of corporate tax deduction of “golden handshakes”
With a view to limit in future exorbitant golden handshakes to leaving employees, voluntary departure indemnities or dismissal indemnities will no longer be tax deductible for employers if they exceed EUR 300.000, taxation rules at the level of the employee fully remaining applicable. A fractioned payment over several years will be deemed to be a single payment. To avoid retroactive application of this measure, companies, whose 2011 financial year closes after December 31, 2010, but who decided to allocate an indemnity on or prior to December 31, 2010, can still fully deduct the payment.
Subscription tax exemption of “FTE” funds
The UCITS IV Directive draft implementation law further proposes to introduce an exemption from the subscription tax for Exchange Traded Funds (FTE), i.e. UCIs (or individual compartments of umbrella funds), of which the securities are listed at least one stock exchange or any other regulated market, recognized and open to the public and of which the exclusive purpose is to track index performance.
Introduction of a new minimum tax for certain holding companies
Taxpayers subject to corporate income tax, who are not subject to any business license and who own financial assets (participations, securities, cash) exceeding 90% of total assets, e.g. typically holding companies, as defined in the Standard
Increase of tax depreciation for investments in “green” technology
Businesses making eligible investments aiming to protect the envi-
Subscription tax exemption of “Microfinance” funds
Aiming to promote Microfinance in Luxembourg, UCI’s and Specialized
Table des matières de la publication Le magazine du trésorier - n°71 - 3ème trimestre 2010
- Euro en crise ou maladie de jeunesse ?
- M. Marco Pescarolo, Trésorier du Groupe Ferrero Bekkari
- The Bank Balance Score Card or How to Rate your Banks
- Performances relatives ou absolues
- Don't waste a good crisis
- L'évolution de la fonction fiscale
FORUM OF ADVERTISERS
- Après la réduction des coûts, l'optimisation des revenus
- La démarche « Creditoring »
- 15 minutes with… Hamburg-Mannheimer
- Green Finance : Rethinking Finance, introducing the carbon neutral CFO
Le magazine du trésorier - n°71 - 3ème trimestre 2010