An overview by ATOZ Tax Advisers, Taxand Luxembourg
A draft law has recently been presented to the Luxembourg Parliament to amend the country’s Pillar Two Law, aligning it with the OECD’s guidance on taxing multinational enterprises (MNEs) and large domestic groups. The amendment aims to clarify the scope and application of the law, including the definition of turnover and the treatment of investment funds and real estate investment vehicles.
The changes will ensure that Luxembourg’s tax rules comply with the OECD’s global minimum tax standards and provide legal certainty for taxpayers. The law, which enforces a 15% minimum tax rate for large groups, will apply to tax years starting on or after 31 December 2023. Taxpayers are advised to stay updated on further OECD guidance and Luxembourg tax authority instructions.
Andreas Medler from ATOZ Tax Advisers, Taxand Luxembourg, has analysed this draft law in further detail here.