One is the approbation of the new Luxembourg-United Kingdom Income and Capital Tax Treaty. Once in force, this new double tax treaty will replace the current treaty dated 1967.
For more details, we refer to our newsletter dated June 2022 (BREAKING NEWS: Luxembourg and the United Kingdom have concluded a new tax treaty).
The second approves the extension from 29 to 34 days of the so-called “tolerance threshold” provided for cross border workers under the Luxembourg-France Income and Capital Tax Treaty (2018). This protocol will apply to tax periods on or after 1 January 2023 and be applicable once in force (upon respective notification between the States).
We refer to our earlier publication on that topic (International Tax Update: End of covid measures for cross-border workers on 30 June 2022).
Finally, the German Ministry of Finance, announced on 18 January 2023 that negotiations are ongoing for an amending protocol to update the Luxembourg-Germany Income and Capital Tax Treaty (2012). Further developments to be followed.
For any questions, please contact your trusted advisor at Tiberghien Luxembourg or contact any of the authors of this publication.
Michiel Boeren – Partner (michiel.boeren@tiberghien.com)
Maxime Grosjean - Senior Associate (maxime.grosjean@tiberghien.com)
Madeline Morel - Associate (madeline.morel@tiberghien.com)
Emma Fontenaud – Associate (emma.fontenaud@tiberghien.com)