An overview by ATOZ Tax Advisers, Taxand Luxembourg
Since the start of 2024, there have been notable tax developments in Luxembourg and abroad. Our Luxembourg firm, ATOZ Tax Advisers, Taxand Luxembourg, has published its Insights report for May 2024.
Key updates include:
On 31 May 2024, a new law to revive the construction sector was published, with some measures limited to 2024 and others being structural. Commentary on the tax measures, including regulations and legislative amendments, is provided.
On 20 February 2024, the Administrative Court ruled that taxpayers can invoke the “substance over form” principle, reinstating equity between taxpayers and tax authorities. An analysis of this ruling is included.
On 25 March 2024, the Luxembourg tax authorities clarified the Pillar Two law’s application, particularly on deferred tax assets and liabilities. These clarifications are analyzed.
At the EU level, progress on direct tax initiatives has been slow, with the “FASTER” proposal for withholding tax procedures being a notable exception. An overview of various proposals and the Pillar One multilateral convention is provided.
The Court of Justice of the EU ruled on 7 March 2024, in the “Feudi” case, that turnover cannot challenge a company’s VAT status or limit VAT deduction rights. This ruling and its implications for Luxembourg are analyzed.
The “Mobility Directive” is expected to be transposed into Luxembourg law soon.
