The Minimum Corporate Income Tax (hereafter "Min CIT") as applicable from the year 2013 introduced a two stage approach to determine to which Min CIT a taxpayer was subject.
In a first step, the composition of the balance sheet is analysed, in order to assess whether more than 90% of the assets of the taxpayer are composed of financial assets (financial assets being defined as assets included in the accounts 23, 41, 50 and 51 of the Luxembourg accounting scheme, the Plan Comptable Normalisé).
In case this threshold is met, the taxpayer was subject to a Min CIT amounting to EUR 3,210 (solidarity surcharge included). If not, the taxpayer was subject to a Min CIT depending on the total balance sheet and ranging from EUR 535 (solidarity surcharge included) to EUR 21,400 (solidarity surcharge included).
As of January 1st 2015, the legislator introduced an additional condition, mainly in order to promote start-ups and small enterprises. From now on, in order to be subject to the EUR 3,210 Min CIT (solidarity surcharge included), the taxpayer not only has to have a balance sheet composed of more than 90% of financial assets, but those financial assets also need to amount to more than EUR 350,000.
If the financial assets amount to less than EUR 350,000, the taxpayer now falls into the variable Min CIT. A Min CIT of EUR 535 (solidarity surcharge included) is due where the total balance sheet is equal or lower than EUR 350,000 or a Min CIT of EUR 1,605 (solidarity surcharge included) is due where the total balance sheet is higher than EUR 350,000 and equal to or lower than EUR 388,888.