Among the key tax measures proposed this year by the finance minister, Gilles Roth (CSV), is support for single-parent families, where children are most at risk of poverty. His bill passed parliament on 11 December 2024. Library picture: Eva Krins/Maison Moderne

Among the key tax measures proposed this year by the finance minister, Gilles Roth (CSV), is support for single-parent families, where children are most at risk of poverty. His bill passed parliament on 11 December 2024. Library picture: Eva Krins/Maison Moderne

The Chamber of Deputies has approved the "Entlaaschtungs-Pak" bill. This 17-measure tax package is designed to boost household purchasing power and the competitiveness of the economy.

Presented by the government in July, the "Entlaaschtungs-Pak" bill was approved by the Chamber of Deputies on Wednesday evening. The aim of this tax package, which comprises 17 measures, is to increase household purchasing power, boost the competitiveness of the economy and make the financial centre more attractive.

"We promised less tax and more purchasing power for everyone, and we have kept our word", the finance minister (CSV) stated following the vote. "The Entlaaschtungs-Pak also sends out strong signals to businesses and our financial centre. Together, we are going to build a better future for our country and offer our fellow citizens greater prosperity."

These are the key points to remember about this reform. For more details on the Entlaaschtungs-Pak, .

Lower taxes for households

The primary aim of the Entlaaschtungs-Pak is to reduce the tax burden on households:

- adjusting the tax scale: the personal income tax scale will be adjusted by 2.5 additional index brackets, giving a total of 6.5 brackets, including those already adjusted when the government was appointed;

- support for single-parent families: households with a gross annual income of up to €52,400 will be exempt from tax for the 2025 tax year;

- exemption for the minimum social wage: the non-qualified minimum social wage will be exempt from tax for all tax classes from January 2025.

Measures to boost attractiveness

To consolidate competitiveness and attract talent, the bill proposes:

- bonus and impatriate scheme: various specific schemes for talent and highly specialised profiles will be made more attractive to the employees concerned. This applies to the profit-sharing bonus and the impatriate scheme;

- bonus for young employees: a new bonus will be introduced to encourage the integration of young workers;

- tax credit for overtime: a special tax deduction will benefit cross-border employees who work overtime;

- recruitment incentives: in order to encourage companies to recruit more unemployed people, the related tax bonus will be extended until the end of 2026.

Boost for businesses and the financial centre

Businesses will also benefit from this plan:

- Reduction in corporation tax: the rate will be reduced by one percentage point in 2025;

- exemption for ETFs: actively managed exchange-traded funds will be exempt from subscription tax from 2025.

Read the original French-language version of this news report /

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