Goodwin (JD Supra Luxembourg)

On 6 November 2020, Luxembourg and Russia signed a Protocol amending the Luxembourg-Russian Double Tax Treaty. This new Protocol provides new withholding tax rates and rules for the taxation of dividends and interest payments. The legislation will take effect beginning 1 January 2022.

Luxembourg has introduced new legislation disallowing the deduction of interest and royalties owed by Luxembourg corporate taxpayers to associated enterprises established in a jurisdiction included in Annex I of the European Union list of non-cooperative jurisdictions for tax purposes. This new provision applies as of 1 March 2021. Below is a summary of the main points covered by this law...

On 11 March 2021, the Luxembourg Tax Authorities published a Circular providing guidance on the process for initiating the mutual agreement procedure (“MAP”) under bilateral income tax treaties and explaining the interaction with other procedures and legal remedies. Under Article 25 of the Organization for Economic Co-operation and Development (OECD) Model Tax Convention, which is included in...

On 8 January 2021, the Luxembourg Tax Authorities published a Circular clarifying the interest limitation rules introduced in Luxembourg legislation in 2018, which implemented the European Union Anti-Tax Avoidance Directive 2016/1164 (ATAD 1). As a reminder, this legislation provides a limitation on the deduction of net financial costs referred to as exceeding borrowing costs (EBC). These...

On 8 January, 2021, the Luxembourg tax authorities published Circular L.I.R. 168bis/1 on interest limitation rules (the “Circular”). The Circular provides much needed clarity to the interest limitation rules which have been introduced in Luxembourg law as a result of the implementation in local legislation of the EU Anti-Tax Avoidance Directive 2016/1164 (colloquially, known as ATAD). In...

On 1 December, 2020, the Luxembourg tax authorities issued circular L.I.R 147/2, 166/2 and eval. n°63 on the application of EU Directive 2011/96 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (the “EU Parent Subsidiary Directive”) to Gibraltar companies (the “Circular”). The EU Parent Subsidiary Directive was designed to...

Regulation (EU) 2019/2088 of 27 November, 2019 on sustainability-related disclosures in the financial services sector, as amended by Regulation (EU) of 18 June, 2020 on the establishment of a framework to facilitate sustainable investment (the “SFDR”) will come into force on 10 March, 2021. Now is the time for AIFMs, UCITs managers, managers of EuVECA and EuSEF funds, MIFID investment advisers,...

With the transition period coming to an end by the end of 2020, many UK managers are questioning the implication of Brexit to the fundraising and management of Luxembourg-based funds. As forecasted in our previous market insights, the CSSF issued a press release yesterday... clarifying the future of UK AIFMs managing Luxembourg funds.

Many UK managers are currently questioning the implication of Brexit to the fundraising and management of Luxembourg based funds. In particular, many query whether they may still today launch a new Luxembourg fund and act as their AIFM. Is it possible and worth it? The answer is yes, for now.

The much-awaited Luxembourg state budget for FY 2021 has finally been tabled before the Chamber of Deputies. Delayed due to the ongoing COVID-19 pandemic, the Luxembourg government published bill number 7666 on 14 October 2020. It is intended that the provisions of the bill will enter into force from 1 January 2021. Although the Luxembourg Parliament still needs to vote on the bill, it is...

A variety of steps have been taken to accommodate managers working during the lockdown. As at 29 September 2020, these measures are as follows: 1. MORE FLEXIBILITY FOR THE GOVERNANCE OF FUNDS - On 20 March 2020, the government increased flexibility for the governance of funds during lockdown orders enacted under the emergency legislation of 20 March 2020... These measures were subsequently...

Many managers identify and assess the key legal and commercial costs and benefits of AIFMD passports as well as the short- and long-term regulatory and operational implications of the management of the fund by an EU-based manager. Current solutions available to UK managers to address Brexit-related risks are opportunities to consider for non-EU fund managers…

Various measures have been implemented to help Luxembourg funds and companies tackle the impact of the COVID-19 outbreak... In a context where limited travel and social distancing are the rules, the interest in electronic signatures is now widespread. On July 17, 2020, a new law on e-commerce and electronic signature (the “E-Commerce Law”) was implemented which does not fundamentally change...

A variety of steps have been taken to accommodate managers working during the lockdown. As at 22 June 2020, these measures are as follows: 1. MORE FLEXIBILITY FOR THE GOVERNANCE OF FUNDS...

Luxembourg parliament has recently adopted two new laws to provide headroom to operating businesses and funds in respect of their accounting obligations. The extensions granted under these new laws will only apply to filings and publications that (i) were not due before the declaration of state of crisis for a three month period in Luxembourg (i.e., 18 March 2020) and (ii) relate to periods...

In this client alert we outline the practical approach taken in Luxembourg for companies and unregulated investment funds facing liquidity issues resulting from government lockdowns in response to the COVID-19 outbreak. In the current environment, to reduce the risk of becoming insolvent, businesses and funds need to address cashflow while continuing to pay ongoing expenditures. Without...

A variety of steps have been taken to accommodate managers working during the lockdown. As at 23 April 2020, these measures are as follows: 1. MORE FLEXIBILITY FOR THE GOVERNANCE OF FUNDS - The increased flexibility for the governance of funds during lockdown orders enacted under the emergency legislation of 20 March 2020...