Temporary budget balancing tax

The Luxembourg Parliament passed several laws in the framework of the 2015 Budget on December 19th 2015. The Budget Laws include a temporary budget balancing tax that has been introduced starting January 1st 2015. This new tax only concerns individuals and will be levied at a rate of 0.5% on professional and substitute income as well as the income generated from a taxpayer's personal wealth.

This budget balancing tax that is levied jointly by the LTA and the Social Security Centre will be computed on the basis of the income, as taken into account by the Social Security Centre for the purposes of determining the social security contributions and will, in most cases, be withheld at source.