2024-08-30-KPMG_Global-Luxembourg_–_Individuals_Stand_to_Benefit_under_the_New_Budget_Bill_5页_252kb

报告摘要

Summary of GMS Flash Alert: Luxembourg Budget Bill 2024-175

Overview: Luxembourg's Finance Minister introduced a new budget bill with 16 tax measures aimed at boosting competitiveness, attracting talents, and providing financial relief. The bill is still under parliamentary review and may change. Key measures target individuals, companies, expatriates, cross-border workers, and young employees, with effects from tax year 2024 or 2025.

Main Benefits: Relieves tax burden for low-income households, expatriates, and workers facing cost-of-living increases. Companies may see changes in assignment costs.
Key Individual Tax Measures:
- Adjustment of personal income tax brackets and relief for tax class 1A (single-parent households, widows, etc.), effective 2025.
- Non-qualified minimum social wage fully exempt from tax.
- 50% tax exemption on overtime hours for cross-border workers, available from 2024 for eligible cases.
Employer-Focused Measures:
- Changes to participative premium: Annual remuneration cap increased from 25% to 30%, employer allocation rate from 5% to 7.5% of profit, effective 2025.
- Simplified impatriate regime: 50% tax exemption on gross annual remuneration up to €400,000, with a minimum 75% work time condition in Luxembourg; some conditions remain unchanged.
- New bonus for young employees (under 30) with indefinite contracts: Annual bonus capped between €2,500 and €5,000, with 75% tax-free, effective 2024.
Notes: Bill may be subject to amendments; one measure announced but not included in the bill concerns full mortgage interest deduction as of 2024. Employers should consult tax professionals for impacts.
Effective Dates: Most measures take effect from tax year 2024 or 2025.