• Preferentials Loans and Interest Subsidies
Publication:

Preferentials Loans and Interest Subsidies

15 March 2015

It is current practice for employers to grant preferential loans or interest subsidies to their employees.

The interest savings realized by the employees constitute a benefit in kind and must, therefore, be subject to wage withholding tax. However, the Luxembourg law provides some exemptions which make such benefit particularly attractive for both employees and employers.

 

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