International Tax

Business Operations in Luxembourg (Portfolio 7220)

  • This Portfolio contains the basic information to enable foreign businesses to determine the best method of conducting their operations in Luxembourg from both the tax and the general legal points of view.

Description

Tax Management Portfolio, Business Operations in Luxembourg, No. 7220, contains the basic information to enable foreign businesses to determine the best method of conducting their operations in Luxembourg from both the tax and the general legal points of view. It analyses in detail the statutory and procedural framework of Luxembourg income taxation as applied to individuals, business companies, holding and finance companies and funds.

The analysis includes a summary of many of the considerations relevant to establishing a business in Luxembourg. In addition to providing a detailed explanation of the Luxembourg system of income taxation, particularly the participation exemption available in Luxembourg, the Portfolio also discusses important business tax, net wealth tax, personal income tax and value added tax issues.

Although Luxembourg is far from being a tax haven (especially for individual taxpayers), the country has a liberal fiscal policy insofar as the avoidance of double taxation and withholding taxes, the possibility of obtaining advance rulings and the activities of investment funds and special purpose companies are concerned.

Among the Worksheets are model articles of incorporation for commonly used business entities in Luxembourg and the text of the Luxembourg-United States Income Tax Treaty. A complete list of the Worksheets is shown on the Table of Worksheets.

Person wishing to engage in transactions involving Luxembourg or using Luxembourg entities are advised to use this portfolio to obtain a general understanding of the Luxembourg tax law and tax system and should always seek professional advice before engaging in a transaction.

This Portfolio may be cited as Moons, 7220 T.M., Business Operations in Luxembourg.

 

Table of Contents

Detailed Analysis
I. The Grand Duchy of Luxembourg — the Country, Its People and Its Economy
II. Operating a Business in Luxembourg
III. Forms of Doing Business in Luxembourg
IV. Special Purpose Companies
V. Principal Taxes and Sources of Authority in Tax
VI. Taxation of Domestic Companies
VII. Taxation of Foreign Companies
VIII. Taxation of Partnerships
IX. Taxation of Other Business Entities
X. Taxation of Resident Individuals
XI. Taxation of Nonresident Individuals
XIII. Intercompany Pricing
XIV. Avoidance of Double Taxation
XV. Social Security Contributions
Peter_Moons
Peter Moons
Local Partner, Tax
Loyens & Loeff
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