Upcoming amendments to the Luxembourg procedure in tax matters

On 28 March 2023, a new draft law was presented to the Parliament which amends the Luxembourg General Tax Law as well as some other laws on tax procedure in order to simplify and modernise the rules governing the tax procedure in Luxembourg. Afterwards, drafts of Grand-Ducal Regulations aiming at implementing various provisions of the draft law were released.

Some provisions to be introduced are positive as they will bring more certainty for taxpayers.

Unfortunately, it seems that the main purpose of the changes to be introduced is mainly to reduce the duties of the tax authorities and this draft law clearly lacks ambition in respect of the current needs to modernise the Luxembourg tax procedure.

It remains to be seen how this draft law will evolve over the legislative process. Nevertheless, in the meantime, here is a summary of the main changes proposed by the government.