Luxembourg Imposes 15% Minimum Tax for Multinationals Starting 2024

Posted date: 29 Dec 2023

KEY TAKEAWAYS

Luxembourg recently passed law No.8292, requiring multinational corporate groups and substantial EU entities to pay a minimum effective tax rate of 15 per cent starting January 2024.
The law, stemming from the EU Pillar Two Directive, aligns with OECD global anti-base erosion rules and aims to establish a universal minimum tax rate.
Additionally, the legislation allows Luxembourg's tax authority to impose an extra tax on subsidiaries of multinational companies with effective rates below 15 per cent.

Lawmakers in Luxembourg passed law No.8292 in the recent parliament session, which obliges multinational corporate groups and substantial national entities within the EU to pay a minimum effective tax rate of 15 per cent from January 2024.

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GSP Admin