Luxembourg tax law in 2026: the changes finance teams should know

Country reference

• Country: Luxembourg (planned expansion country)
• Authorities: Administration des contributions directes (ACD); Ministry of Finance
• Topic: Luxembourg direct tax legislation and circulars in 2026
• Key date: January to July 2026
• Law: Laws, grand-ducal regulations and ACD circulars published in the Mémorial

Laws

• 3 February 2026: carried interest reform, amending the Income Tax Law and the AIFM Law.
• 10 March 2026: protocols to the tax treaties with Georgia and San Marino approved.
• 27 March 2026: DAC8 on crypto-asset reporting.
• 16 July 2026: financing of a new IT system for assessing and collecting taxes.

Regulations

• February 2026: updates to salary withholding tax, the annual tax adjustment and deductible expenses.
• 13 March 2026: amendments to the CRS and country-by-country reporting regulations.
• 18 May 2026: registration and reporting forms for crypto-asset service providers, and reporting by insurers.
• 26 May 2026: list of jurisdictions with eligible agreements for exchanging Pillar Two information.

Circulars

• 13 April 2026: Amount B for baseline distribution.
• 12 May 2026: net wealth tax rates, minimum tax and reduction.
• 24 June 2026: application of the France-Luxembourg tax treaty protocol, point 3, replacing the 2020 circular.

What is coming

• The 2027 budget: corporate tax down to 15% and other business measures.
• A personal tax reform towards a single tax class.
• Pillar Two filings for 2025 and the first DAC8 reports in 2027.

What to do now

• Check whether cross-border workers or French-linked structures are affected by the new circular.
• Update CRS and CbCR procedures for the March 2026 regulations.
• Add 2027 deadlines to the compliance calendar.

Our take

Luxembourg changes its tax law in many small steps rather than one big reform. A quarterly review of the ACD legislation page is the simplest way to stay current.