Luxembourg to Increase Personal Tax Rates for 2017

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By Molly Ward

Aug. 22—New personal income tax brackets with new 41 and 42 percent rates on income more than 150,000 euros ($169,802) and 200,004 euros ($226,384), respectively, would be effective Jan. 1, 2017, under legislation submitted to Parliament July 26 by the Luxembourg Minister of Finance.

There also would be new tax rates of 9 and 11 percent, bringing the new total of income tax brackets to 23 from 19.

In addition, the bill includes a revision of almost all the income tax brackets, with increases to the lower thresholds ranging from 2 euros ($2.22) to more than 4,000 euros ($4,432).

The 2015 temporary tax that required an additional contribution of 0.5 percent on professional income also would be eliminated on Jan. 1, 2017, the bill said.

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For More Information

The bill can be found in French at

More information on payroll issues in Luxembourg can be found in the Luxembourg country primer.

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