The Luxembourg Bankers’ Association said that it welcomed the decision by the Luxembourg Parliament to abolish the country’s net worth tax a...

The Luxembourg Bankers’ Association said that it welcomed the decision by the Luxembourg Parliament to abolish the country’s net worth tax and introduce a 10 per cent final withholding tax on interest instead for Luxembourg residents. The move brings Luxembourg in line with the requirements of the European Union Savings Tax Directive, introduced in July 2005. The Association said the new law does contain exemptions for interest on income from investment funds, which continue to be subject to ordinary income tax rules. The maximum rate of net worth tax on interest from income in Luxembourg was previously 39.85 per cent.