Minister announces tax amnesty for Luxembourg
The Luxembourg Finance Minister Pierre Gramegna Wednesday announced a tax amnesty measure for income from Luxembourg which has not been declared, a first in the Grand Duchy.

(AFP/JB) The Luxembourg Finance Minister Pierre Gramegna Wednesday announced a tax amnesty measure for income from Luxembourg which has not been declared, a first in the Grand Duchy.
He announced an action to "launder" tax evaders during the presentation of the draft budget 2016 before the Chamber of Deputies.
This will lead to a 10 percent withholding tax on the amount of taxes owing and which will be regularised in 2016 and 20 percent for the adjustments in 2017.
This announcement is the real surprise of the 2016 draft budget that was presented to MPs as it marks the first time a tax amnesty will take place in Luxembourg.
Specifically, this measure will result in the insertion of a new article of law, introducing "a temporary scheme (...) the regularisation of assets and income held by persons with tax residence in Luxembourg".
This device is provided over three years. No indication was given on possible extensions for those who have not used the device in the time given.
The penalties normally applied to tax evaders will be lifted provisionally. The budget bill says the amnesty covers penalties for willful tax evasion, tax fraud and involuntary tax evasion.
Normally sanctions are issued of up to twice the amount of the tax evaded, plus a jail term of one month to five years.
To qualify for the "temporary regularisation regime," taxpayers will be subject to two conditions: first, submit "a corrective statement" to the tax administration, then pay the full amount of taxes owing.
It will involve a single declaration taking into account "all assets held and income received which remained unregistered."
The budget bill reserves the scheme for Luxembourg tax residents and also allows for people to make spontaneous declarations if a person is suspected of money laundering.
Luxembourg taxpayers who have already been involved in an administrative or judicial procedure will not be allowed to take advantage of the amnesty.
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