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On November 5, 2024 The Council of the European Union, after long negotiations, announced that the EU’s Taxation Council has reached an agreement on the VAT in the Digital Age (ViDA) package.

The Law of 24 July 2024, transposing EU Directive 2019/1152 of 20 June 2019 on transparent and predictable working conditions in the European Union has been published in the Mémorial A No 324 of 31 July 2024.

On 17 July 2024, the Luxembourgish government announced a list of new measures designed to boost purchasing power, with effect from 1 January 2025. The announcements below are still in draft form and have not yet been definitively implemented.

As already mentioned in our previous newsletters, we would like to remind you that for your non-resident employees, mandatory social security formalities must be completed with the authorities in the countries of residence concerned.

Don't let the stress of tax returns overwhelm you. Leave your duties to us and enjoy the peace of mind you and your employees deserve.

Adjustment of tax brackets and tax credits - The legislator has adjusted the income tax scale by 4 indexed brackets, with effect from 1st January 2024. This will result in tax reduction for all taxpayers.

It's been five years since the last elections! The next social elections for companies with more than 15 employees will take place on 12 March 2024. While the process is set out in detail in a draft ministerial decree, it's important to remember that there are a lot of things that need to be done, requiring resources, time, and technical skills.

STATEC has confirmed, on Wednesday 30 August, the triggering of a new salary indexation as from 1 September 2023.

As stated in the March tripartite agreement, a new tax credit, the “Crédit d'Impôt Conjoncture” (economic tax credit) will increase salaries retroactively from January 2023.

Following the monthly meeting of the Index Commission, the STATEC has confirmed the triggering of a new salary indexation as of 1 April 2023.

The 2022 tax forms are here! Discover our payroll newsflash and learn more about new rules in 2023 at a glance.

Discover our payroll newsflash and learn more about increase in social minima cross-border workers, car benefit in kind, grant thornton luxembourg.

The Energy Tax Credit is a measure introduced by the Chamber of Deputies from July to compensate the postponement of the index and thus supporting households to face the soaring prices of energy.

In terms of fiscal measures, the exceptional Covid-19 measures put in place through mutual agreements with the border countries to enable homeworking have ended on 30 June 2022. From a fiscal point of view, the tolerance threshold of days worked abroad for non-resident employees is fixed from July 2022.

The new index comes into force on 1 April 2022, resulting in a 2.5% increase in wages, salaries and pensions.

In view of the uncertain evolution of the Covid-19 pandemic, the Luxembourg government has filed a new bill n°7916 aimed at extending the measures put in place by the law of September 23, 2020 until December 31, 2022.