Corporate Tax 2023

Overview of corporate tax work over the last year

Types of corporate tax work

Over the past 12 months, Luxembourg corporate tax work has experienced a high focus in the alternative fund sector, cross-border financing (particularly with securitisation vehicles), and a moderate level of M&A activity involving multinational groups.

The Luxembourg tax authorities ("LTA") continue to focus on transfer pricing documentation and economic substance, so it is now more important than ever to have solid transfer pricing documentation and robust economic substance in Luxembourg structures.

Significant deals and themes

Alternative investment funds

The Luxembourg financial services sector is currently dominated by growth in the alternative investment fund ("AIF") sector. These alternative funds tend to be either tax transparent or exempt, and have thus proved to be highly tax-efficient investment vehicles. We summarise below the latest developments in this domain.