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By Pierre Kreemer, Tax Partner, Head of Real Estate Infrastructure, KPMG Luxembourg* and Christoph Alter, Tax Manager, Steuerberater, KPMG Luxembourg**
1. Introduction
Effective from 2011, Luxembourg had introduced an annual minimum corporate income tax (MCIT 2011) of EUR 1,500 (EUR 1,575 including the previous solidarity surcharge of 5%) for certain companies as part of a package of fiscal measures in reaction to the financial crisis.(1) The objective of this MCIT 2011 was to make Luxembourg holding companies contribute to the Luxembourg tax revenue and to recover at least the administrative costs associated with them.(2)
Following the ongoing challenging economic climate, Luxembourg now extended the former MCIT 2011 with...
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