Although not all of the new measures introduced by the Tax Reform may be considered as increasing Luxembourg's attractiveness, others will definitively help to promote Luxembourg as an appealing jurisdiction as well for corporations as for individuals.

Whilst social fairness has definitively been increased through the Tax Reform on personal taxation, caution should be taken not to overstretch the tax burden of a certain group of persons contributing largely to local tax revenues. In addition to the risk of relocation of this population, these measures do not facilitate the migration to Luxembourg of key people in all strategic local business areas.

Furthermore, it's a pity that the Tax Reform has not been elaborated so as to further further enhance the competitiveness for corporations. Indeed, in an international tax environment carved by changes such as (i) the imminent implementation of the BEPS measures, (ii) the EC's anti-tax avoidance actions, and (iii) the new tax incentives proposed by other jurisdictions, Luxembourg needs to have the courage to take the right actions to give major corporations and investors reasons to remain in Luxembourg, respectively to establish their European hub there.

In this respect, we could have imagined some further measures as, for instance, additional reductions of the Luxembourg corporate tax rate, abolition of the withholding tax on dividends, deductibility of the director's fees, or abolition of the net wealth tax for corporations. However, as highlighted by the Government, some of these measures may very well be implemented in the future, depending on the development of the international tax environment.

Besides those measures of the Tax Reform that will help to promote Luxembourg as an appealing jurisdiction, the strong economic and political stability with a constant triple-A rating as well as numerous interesting tools already available in Luxembourg make this jurisdiction still a very attractive location as much for corporations as for individuals.