2023 Budget: UEL demands tax relief targeting companies


UEL takes note of the government’s decision to introduce (retroactively for 2023) targeted tax relief for households, to strengthen their purchasing power in these difficult times, depending on the budgetary room.

However, UEL asks that targeted tax relief be introduced to support companies as well, given the difficult economic situation they are also facing.

Different tax measures could be contemplated to:

  • bring forward to January 1st, 2023 (instead of 2024) the amendment to the investment tax credit agreed during the tripartite of September 2022. This amendment would extend its current scope to investments made by Luxembourg companies in digital transformation, as well as energy and green transition projects. This adaptation would be in line with the recommendations of the European Commission to introduce tax relief, notably in the form of tax credits, to support green investments and clean technologies.
  • strengthen the country’s position in attracting talents would also be necessary to support the entire Luxembourg ecosystem and ensure the sustainable development of the local business environment.

Progress in this area as early as 2023 would allow a swifter alignment of taxation with the country’s main objectives and contribute to the economic growth in a sustainable way. This approach is essential to stimulate sustainable competitiveness and preserve the attractiveness of the European Union, and particularly Luxembourg, in view of the recovery measures introduced by the United States (see Inflation Reduction Act).