Juncker Announces Planned Tax Reforms
On 22nd May 2008, Luxembourg's Prime Minister, Jean-Claude Juncker, presented
to Parliament the 2008 statement on the country's economic, social and financial
situation. In his speech, the Prime Minister announced several planned taxation reforms, aimed at
further enhancing Luxembourg’s competitiveness on corporate taxation. After reducing the capital duty from 1% to 0.5% on 1st January 2008, the government
has decided to abolish it altogether as from 1st January 2009, he revealed. Initial capital contributions as well as subsequent increases in capital will
no longer be subject to capital duty. In addition to this, Juncker announced that the corporate tax rate will be
reduced progressively from 29.63% to 25.5% and that legislation to this effect would be passed during the last year of the present government. New elections are due in June, 2009. The government has also decided that income tax brackets for personal income
tax will be increased by 6% in 2009. .
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