Repeal of L.I.R. circulars about “impatriates” and stock option plans

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Date:
17 Dec 2020

Newsflash

By:
Dorothée David

In a newsletter released on 14 December 2020, the “Administration des contributions directes” (The Tax Administration, ACD) published the Circular from the director of taxation L.I.R. no. 95/2 of 14 December 2020 repealing Circular L.I.R. no. 95/2 of 27 January 2014 on the tax system for expenses and fees relating to the recruitment from the international market of employees referred to as “impatriés” (“impatriates”), as of the 2021 tax year.

It provides that the tax system described in the repealed Circular L.I.R. no. 95/2:

  • continues to apply, within the limits and under the conditions therein, and as long as the employees in question do not benefit from the provisions of article 115, number 13b of the modified law of 4 December 1967 on income tax, to impatriates who started working in Luxembourg from 2016 until 2020;
  • does not apply to impatriates for whom the tax system defined in the circular came to an end, for one reason or another, during the same period from 2016 until 2020.

In a newsletter released on 14 December 2020, the ACD, published the Circular from the director of taxation L.I.R. no. 104/2 of 14 December 2020 repealing Circular L.I.R. no. 104/2 of 29 November 2017 on the tax system for stock option plans, as of the 2021 tax year.