Market Intelligence

Panama and Vietnam have been removed from the EU's Blacklist of non-cooperative tax jurisdictions, a change that directly impacts Luxembourg taxpayers through interest and royalty deductibility rules, tax-return reporting requirements, and mandatory disclosure obligations under DAC6. ATOZ's tax experts examine how these removals affect compliance and reporting for businesses operating in Luxembourg.

Luxembourg's proposed 2027 budget law introduces significant corporate tax reforms, including a 1% reduction in corporate income tax rates that would lower the maximum aggregate tax burden in Luxembourg City to 22.80%. The Bill also extends the holding period for speculative gains on movable assets from six to twelve months and eliminates the 17-year limit on tax loss carryforwards, measures designed to enhance Luxembourg's competitiveness while encouraging longer-term investment strategies.

Luxembourg's draft budget for 2027 introduces significant tax reforms affecting businesses, investors, and employers, including a corporate income tax rate reduction, unlimited loss carryforwards, and enhanced investment credits for digital and green initiatives. The proposed measures also modify capital gains rules, residential investment deductions, and streamline employer reporting obligations for impatriate and profit-sharing regimes.

Luxembourg's 2027 Budget bill introduces significant corporate tax reforms, including a reduction in the corporate income tax rate to 15% and the elimination of the 17-year limit on tax loss carry forwards.

Luxembourg's financial supervisory authority has issued new guidance on tokenisation for investment funds, clarifying how entities can leverage distributed ledger technology while maintaining regulatory compliance. The FAQ addresses critical operational questions around native token issuance, control agent requirements, and the appointment of multiple administrators for tokenised and traditional fund units.

Luxembourg's financial regulator CSSF has issued new guidance clarifying how investment funds can natively issue units and shares using distributed ledger technology. The FAQ addresses critical questions about the interaction between traditional fund administration roles and blockchain-based control agents, while establishing compliance requirements under DORA regulations. What operational models and regulatory obligations must fund sponsors navigate when tokenizing Luxembourg UCIs?