Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016 - (Page 6)

Lux News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°92 - JAN / FEB / MAR 2016 Direct Tax 6 Draft law amending incentives for professional training Draft law introducing a new net wealth tax regime Draft law n°6883 aims at adapting the current legislation on incentives for hiring unemployed persons. Inter alia, the draft law foresees to reduce the co-financing rate from currently 20% to 15%, except for certain categories of persons (employees without formal qualification and employees aged over 45 years) for whom the rate remains at 35%. The investment will be capped depending on the number of employees occupied in the enterprise: between 1 and 9 employees capped at 10%, between 10 and 249 employees at 3% and for more than 250 employees at 2%. As regards the adaptation training for individual positions, the length is reduced from currently 173 hours to 80 hours and is only available for employees without professional qualification who can also benefit from the 35% co-financing rate mentioned above. Furthermore, all mandatory trainings foreseen by law will no longer qualify for the incentive. Finally, certain costs do no longer qualify for the incentive (costs linked to office rent, to training materials, etc.) Draft law n°6891 provides for various amendments regarding corporate income and net wealth tax. Pursuant to the provisions of draft Law, net wealth tax continues to be levied at a rate of 0.5% on an amount of unitary value up to and including €500 million, but the rate is reduced to 0.05% for any taxable amount exceeding €500 million. It is furthermore proposed to abolish, as from tax year 2016, the minimum corporate income tax and to replace it, as from 1 January 2016, by a minimum net wealth tax corresponding widely to the current minimum corporate income tax as regards amounts and computation method (i.e. based on balance sheet total). The amount of net wealth tax finally due will be the higher of the net wealth tax calculated on the unitary value and the minimum net wealth tax calculated on the balance sheet total. In case the minimum NWT is applicable, it is reduced by the amount of corporate income tax (including contribution to the employment fund but after deduction of possible tax credits) due by the company for the preceding year. The minimum net wealth tax regime also will apply to certain types of entities which currently fall within the scope of the minimum corporate income tax. While still benefitting from a net wealth tax exemption as such (meaning an exemption from paying net wealth tax based on the unitary value), securitization companies, venture capital companies (société d'investissement en capital à risque, or SICAR), corporate pension funds (société d' épargne-pension à capital variable, or SEPCAV), all incorporated under the form of a capital company, and pension savings associations (association d'épargne-pension, or ASSEP) would be liable to the minimum net wealth tax as of 1 January 2016. 2016 draft Budget law In order to comply with the nexus approach as agreed at the level of the OECD and at the EU level, the Government has incorporated the announced termination of the current IP regime in the Budget 2016. The current regime, providing for a partial exemption of 80% applying to net income and capital gains derived from qualifying IP rights, will be abolished as from 1 July 2016 with the internationally agreed five-year transition period. The current IP regime will thus be maintained, subject to safeguard measures, for a transitional period starting on 1 July 2016

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Anni Mykkanen, Policy Advisor EACT
FOCUS
Trésorier d'entreprise : homme- orchestre ou nouveau Business Partner?
IFRS 9: Time to prepare
Uberization' of the economy
What if the new regulations were a new source of risk?
FORUM
Risk and compliance
Is it really your CEO asking for that offshore transfer?
Navigation par gros temps : budgétez vos risques
Commodities hedging
Commodity risk management
Identity and access management
Enabling treasury transformation
CORPORATE FINANCE
Treasury survey: the dynamics of change in treasury
The perfect solution for portfolio management
Meeting market liquidity needs
Automatiser la gestion des comptes bancaires
The age of business simplification is upon us
15 MINUTES WITH Vallstein
THE FINANCIAL RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°92 - Jan/Fev/Mar 2016