Background
On 10 November 2023, the Luxembourg Constitutional Court ruled
that the current minimum net wealth tax regime, as applied to
Luxembourg resident companies, partially violates the
constitutional principle of equal treatment.
In summary, Luxembourg resident companies are in principle
subject to net wealth tax levied annually at a rate of 0.5% on
their net asset value, with any portion of such wealth exceeding
EUR 500,000,000 being subject to a rate of 0.05%.
The law also provides for minimum net wealth tax rules
derogating to the principle. It is stated that a minimum net wealth
tax of EUR 4,815 is applicable to Luxembourg resident companies
whose financial fixed assets, transferable securities, intercompany
receivables, and cash deposits exceed EUR 350,000 and 90% of their
total gross assets. In all other situations, Luxembourg resident
taxpayers are subject to a minimum net wealth tax determined under
a progressive scale ranging between EUR 535 and
