New R&D Incentives To Be Included In The 2017 Tax Reform Package, Says Gramegna
Ever since the abolition of the Luxembourg IP regime, businesses and international investors have been eagerly awaiting news about what the future would hold for Research and Development (R&D) activities. The government will be phasing out the old regime as from July this year, as the existing rules run counter to the new international framework endorsed by both the EU and OECD, known as the "nexus" approach. The repeal of the current IP regime left the business community wondering what the Government might propose as an alternative solution. So when Luxembourg Finance Minister Pierre Gramegna revealed his plans for a new-look regime last week, we leant in and read closely.
In response to a parliamentary question, Minister Gramegna confirmed that the Luxembourg government is already working on the finer details of an alternative IP measure. Although several options are under consideration, all share the same clear objective of setting rules that would both be compliant with the "nexus" approach while also acting as an incentive for R&D.
As the news about the announcement came in last week, we have good reason to believe that it will be genuinely welcomed by Luxembourg businesses and international...
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