Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 20 MAY 2020

Luxembourg Tax Authorities Release Circular On Luxembourg CFC Rules

Atoz Tax Advisers
Atoz Tax Advisers
Contributor
Atoz Tax Advisers

Atoz Tax Advisers

Our firm Founded in 2004, ATOZ Tax Advisers is a leading independent tax advisory firm offering a...

View firm profile
Explore more from Atoz Tax Advisers

On 4 March 2020, the Luxembourg tax authorities released a Circular on the CFC rules (article 164ter of the Income Tax Law) introduced as of 1 January 2019 following the implementation of...

LuxembourgTax
Petya Dimitrova
Petya Dimitrova
Samantha Schmitz
Samantha Schmitz

OUR INSIGHTS AT A GLANCE

  • On 4 March 2020, the Luxembourg tax authorities released a Circular on the CFC rules introduced as of 1 January 2019 following the implementation of ATAD into Luxembourg law
  • The Luxembourg CFC rules provide that a Luxembourg corporate taxpayer or a Luxembourg permanent establishment of a non-Luxembourg tax resident entity will be taxed on the non-distributed income of an entity or permanent establishment which qualifies as a CFC provided that the non-distributed income arises from non-genuine arrangements which have been put in place for the essential purpose of obtaining a tax advantage
  • The Circular aims at clarifying the scope and the practical application of the new CFCs legislation. Although it brings some useful guidance as to how the rules should be applied in giving some examples, some important questions still remain to be clarified

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

EU Tax Omnibus Package: Key Changes For Europe And Luxembourg

The European Commission's Omnibus proposal seeks to fundamentally reshape the EU's direct taxation framework by removing shareholding thresholds for dividend exemptions, eliminating prior authorization procedures, and harmonizing interest limitation rules across member states. This comprehensive reform promises to streamline cross-border investment structures while raising critical questions about the treatment of alternative investment funds and pension institutions under the new regime.
LuxembourgTax
CMS Luxembourg
CMS Luxembourg
Article

Luxembourg’s 2027 Budget Bill Proposes Corporate Tax Cuts And Changes To Capital Gains And Loss Carryforwards

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.
LuxembourgTax
Goodwin Procter LLP
Goodwin Procter LLP
Article

Luxembourg Budget 2027: Key Tax Measures For Businesses

Luxembourg's Finance Minister has unveiled a draft budget for 2027 that includes significant tax reforms affecting businesses and investors. The proposed changes include a reduction in corporate income tax rates, the removal of time limits on loss carryforwards, and enhanced investment tax credits for digitalisation and green projects. However, the extension of the speculation period for capital gains from six to twelve months will require careful consideration by fund managers and investors planning asset
LuxembourgTax
BUREN
BUREN
Article

UAE VAT – FTA Clarifies The Requirements For The Verification Of The Validity And Integrity Of Supplies Of Goods Or Services

The UAE Federal Tax Authority has introduced new supplier verification and supply validation requirements that fundamentally alter VAT compliance obligations. Taxable persons must now implement comprehensive due diligence processes to confirm the authenticity of suppliers and transactions before claiming VAT refunds. This regulatory shift places unprecedented responsibility on businesses to actively validate the legitimacy of their supply chain transactions.
United Arab EmiratesTax
Atoz Tax Advisers
Atoz Tax Advisers
Article

UAE Corporate Tax – Updated Guidance On The Taxation Of Family Foundations (2026)

The Federal Tax Authority has issued an updated Corporate Tax Guide on the Taxation of Family Foundations for 2026, introducing important clarifications to the UAE Corporate Tax regime. The new guidance addresses previously uncovered areas including asset transfers, tax basis adjustments, fiscal transparency limitations, and multi-family ownership arrangements, providing greater certainty for family wealth structures operating under UAE tax law.
United Arab EmiratesTax
Atoz Tax Advisers
Atoz Tax Advisers
Article

European Court Of Justice Rules On Spanish Withholding Tax On US RICs

The European Court of Justice has ruled on whether a foreign tax credit mechanism can neutralise discriminatory withholding tax treatment for US Regulated Investment Companies receiving dividends from Spanish listed companies. The Spanish Supreme Court must now determine if theoretical neutralisation at shareholder level can ever be achieved in practice, given the exceptionally high evidentiary bar set by the CJEU.
GlobalTax
Atoz Tax Advisers
Atoz Tax Advisers