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Editorial

Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

Finance Bill 2019: CIT reduction and optional extension of interest limitation rules on fiscal unity

On 5 March 2019 the Luxembourg government filed the new finance bill n° 7450 (“Finance Bill”) with the Luxembourg parliament

CJEU clarifies abuse and beneficial ownership concepts under the Parent Subsidiary and Interest/Roya

On 26 February 2019 the Grand Chamber of the Court of Justice of the European Union (“CJEU”) rendered 2 judgments regarding the non-application of the Parent Subsidiary Directive (Council Directive 90/435/EEC – ”PSD") and the Interest and Royalties Directive (Council Directive 2003/49/EC – “IRD”) in case of fraud or abuse, even in the absence of any domestic anti-abuse legislation.

New bills on ATAD implementation and MLI approval

August 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 15 June 2018 the Luxembourg government approved 2 new bills of law: ATAD Bill and MLI Bill

Unrestricted VAT deduction for active holding companies

August 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 5 July 2018, the Court of Justice of the European Union (“CJEU”) released a welcome decision in the Marle Participations case (C-320/17) concerning the deduction of input VAT by a holding company on costs incurred in relation to acquisitions and sales of shares in subsidiaries.

Tax update - The OECD releases the Base Erosion and Profit Shifting (BEPS) public discussion draft o

August 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 3 July 2018, the OECD launched a consultation on the transfer pricing of financial transactions by publishing the first draft of a new chapter of the OECD Transfer Pricing Guidelines for Tax Administrations and Multinational Enterprises

VAT group legislation voted

August 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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The bill of law n°7278 implementing the VAT group into Luxembourg law was voted on 26 July 2018 by the Chamber of Deputies.

The amended EuVECA and EuSEF Regulations

January 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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Regulation (EU) 2017/1991 amending regulations (EU) No 345/2013 on European Venture Capital Funds (EuVECAs) and (EU) No 346/2013 on European Social Entrepreneurship Funds (EuSEFs) (together, the “Regulations”) has been published today in the Official Journal of the European Union and will be applicable as of 1 March 2018.

New Circular Letter on stock option plans

January 2018 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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​As announced by the Luxembourg Finance Minister in his presentation of the 2018 budget bill, the government introduced certain amendments to the current tax regime of stock option plans. In particular, the valuation of freely negotiable options will be increased as of 1 January 2018 from 17.5% to 30% of the value of the underlying stock.

Tax changes for 2018 disclosed in the new budget bill

November 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 11 October 2017, and the last time before next year’s parliamentary elections, the current Luxembourg Finance Minister presented the budget law for 2018 to the Parliament (Chambre des Députés).

The main tax-related provisions of the Bill of Law N° 7200 (“Bill”) as laid out below in more detail include inter alia:

VAT in the GCC – Q&A updates from the UAE Ministry of Finance

October 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 9 July the United Arab Emirates (UAE) Ministry of Finance (MOF) published an update of the Value Added Tax (VAT) FAQ section of its website.     

New Tax Procedures Law in the UAE

October 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 31 July 2017, the President of the United Arab Emirates (the “UAE”) issued the new Tax Procedures Law (the “Law”). This Law contributes to build the UAE’s tax system, to regulate the administration and collection of taxes and most importantly, to clarify the respective rights and obligations between the Federal Tax Authority (the “FTA”) and the taxpayer.

Confirmation of the end of the VAT exemption regime for financial IGPs

October 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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Following the Luxembourg case C-274/15, the series of cases relating to the scope of the cost-sharing VAT exemption also referred to as “Independent Group of Persons” (“IGP”) continues with the release today of three judgements by the Court of Justice of the EU (“CJUE”): Aviva (C-605/15), DNB Banka (C-326/15) and European Commission v Federal Republic of Germany (C-616/15).

UAE domestic VAT law released!

October 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 27 August 2017, the United Arab Emirates (the "UAE") published the text of its domestic Value Added Tax (the "VAT") Law, shortly after releasing the text of its Excise Tax Law last week, and the Federal Tax Procedures Law earlier this month. It will be followed by implementing regulations, which will provide more detail on application of the VAT Law.

New Tax Procedures Law in the UAE

August 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 31 July 2017, the President of the United Arab Emirates (the “UAE”) issued the new Tax Procedures Law (the “Law”). This Law contributes to build the UAE’s tax system, to regulate the administration and collection of taxes and most importantly, to clarify the respective rights and obligations between the Federal Tax Authority (the “FTA”) and the taxpayer.

Signature of the Multilateral instrument – reservations made by Luxembourg

August 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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On 7 June 2017, the official ceremony for the signing of the multilateral instrument (“MLI”) took place bringing to a close a process initiated last year when a consensus was reached on the wording of the MLI on 24 November 2016 (see also our newsflash dated 2 December 2016, available on our website www.arendt.com section Publications/Newsflash).

Arendt & Medernach: Luxembourg Law Firm of the Year

August 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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Luxembourg, May 2017 – Arendt & Medernach is proud to have been named “Luxembourg Law firm of the year” both by Chambers & Partners and IFLR (International Financial Law Review). The prestigious trophies were both received in April in London at the respective ceremonies of the Chambers Europe Awards 2017 and the IFLR European Awards 2017.

First VAT EU case law on the cost-sharing VAT exemption

August 2017 - Tax & Private Client. Legal Developments by Arendt & Medernach.

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The question of the scope of the cost-sharing VAT exemption, also referred to in the Council Directive 2006/112/EC of 28 November 2006 as amended ("EU VAT Directive") as “Independent Groups of Persons” or “IGPs”, is currently being debated at the Court of Justice of the EU (“CJEU”) in several cases.
Last Thursday marked the first milestone regarding this specific VAT exemption since the CJEU released its judgment in the case Commission v Luxembourg (C-274/15).

This case law is important as it will open a new area in the field of cost-sharing arrangements and a new discussion on the concept of VAT grouping.

​With the decision confirming that Luxembourg has failed to fulfil its obligations, the Luxembourg IGP regime will have to comply with the judgement without delay.

 

Please click on this link to read the full tax update. 

Luxembourg's Direct Tax Administration publishes circular on residency certificates for funds

Luxembourg’s Direct Tax Administration has published a circular on February 12 clarifying issues relating to residency certificates for Luxembourg funds. These are applicable to both UCITS and non-UCITS funds regulated by Luxembourg’s investment fund legislation of December 17, 2010, which transposed the UCITS IV Directive, as well as Specialised Investment Funds set up under the law of February 13, 2007.

Luxembourg's tax authorities issue draft circular on FATCA compliance

February 2015 - Tax & Private Client. Legal Developments by Chevalier & Sciales .

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On January 6, Luxembourg’ Direct Taxation Authority issued a draft administrative circular regarding compliance in the grand duchy with the US Foreign Account Tax Compliance Act and the implementation of automatic exchange of information between Luxembourg and the United States in line with the Model 1 FATCA Intergovernmental Agreement signed by the two countries on March 28 last year.

 

Luxembourg's double tax treaty network

Double taxation avoidance treaties concluded between two states seek to prevent the taxation in both countries of income and capital. Chevalier & Sciales has created this treaty table to provide you with an accurate and updated view of Luxembourg double tax treaties in force or currently pending.

DOUBLE TAX TREATY BETWEEN LUXEMBOURG AND HONG KONG

THE CHINESE SILK ROAD RE-OPENS

Spicy new tax planning opportunities have been created when, on 2 November 2007, the Grand Duchy of Luxembourg and the Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong”) signed a double tax treaty (the “Treaty”), which came into force on 20 January 2009. This Treaty applies retrospectively from 1 January 2008 in Luxembourg and from 1 April 2008 in Hong Kong

Luxembourg - 2009 Tax Reform introduced by the Law of 16 December 2008

December 2008 - Tax & Private Client. Legal Developments by Chevalier & Sciales .

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On 16 December 2008, the Luxembourg Parliament has passed laws to enact the attractive measures already proposed by the bills number 5924 and 5913. These new measures which will be applicable as of 1 January 2009 aim at facilitating investments in and through Luxembourg. The main measures are: (i) the abolition of capital duty as of 2009, (ii) the exemption of withholding tax (under certain conditions) on dividends paid to treaty countries (in case of corporate shareholders), (iii) decrease of the combined corporate income tax to 28,59% as of 1 January 2009 and (iv) broadening the scope of the IP regime introduced by the law of December 2007.

Luxembourg plans to abolish capital duty in 2009

On 9 September 2008, the Luxembourg government submitted to the Parliament (Chambre des Députés) a draft bill for discussion to abolish the Luxembourg capital duty (droit d'apport), as previously announced by the government on 22 May 2008.

LUXEMBOURG - new draft bill - exemption of withholding tax on dividends paid to treaty countries

October 2008 - Tax & Private Client. Legal Developments by Chevalier & Sciales .

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On 1 October 2008, a draft bill (n°5924) introducing new favourable tax measures was submitted to the Luxembourg Parliament. We set out hereunder a brief overview of the main changes that are proposed and that relate to companies.

New tax treaty between Luxembourg and Hong Kong

December 2007 - Tax & Private Client. Legal Developments by Chevalier & Sciales .

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On 2 November 2007, Luxembourg signed a tax treaty with Hong Kong. The maximum withholding taxes that are set out are:

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