A synopsis from ATOZ Tax Advisers, Taxand Luxembourg
The Luxembourg Government has recently submitted draft legislation aimed at boosting the country’s appeal as a hub for innovation by introducing a dedicated tax regime for employee stock options in innovative start-ups. The proposed reform is designed to help fast-growing businesses attract and retain highly skilled talent by enabling employees to share in future value creation through a tax framework that is both competitive and legally robust.
The draft legislation also codifies the tax treatment of stock option plans under standard rules, providing greater legal certainty following the withdrawal of previous guidance in 2020.
Christina Leomy-Voigt and Marie Bentley from our Luxembourg member firm, ATOZ Tax Advisers, outline the main takeaways from the proposed stock option reform, which you can read here.