JD Supra (JD Supra Luxembourg)

Luxembourg is a jurisdiction, globally well-known for its fund industry (2nd place in the world for investment funds), but finance is not the sole sector you should have in mind while thinking of Luxembourg. The space sector, in all its diversity (from mining to satellite), is designed to be a future pilar of the country, being already known globally among the key players as a jurisdiction of...

On 28 July 2023, the law of 21 July 2023, which modernises the laws governing UCITS, Part II UCIs, SIFs, SICARs, RAIFs and Luxembourg asset managers, enters into force (the Law). Please see Publication below for more information.

We are very pleased to present our second Luxembourg corporate law focused case law briefing. - In this second edition, we have focused on those decisions published in 2020 and 2021 which we have identified as the mostrelevant for actors navigating the corporate sector. Topics as diverse as minority shareholder action, coexistence of an employment contract and corporate mandate, and directors’

On 18 May 2022, the CSSF published CSSF circular 22/812 (the CSSF Circular) through which it integrates into its administrative practice and regulatory approach the EBA guidelines on the so-called limited network exclusion (LNE) under Directive 2015/2366 (PSD II) (the Guidelines). The LNE enables service providers to issue certain payment instruments or e-money without requiring a licence under...

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...

WLG asked member firms around the globe to provide some insight on employer and employee rights when it comes to requiring the COVID-19 vaccine to return to work. Responses for Luxembourg.

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...

Status – Has any special status been introduced? No state of crisis. - The state of crisis was lifted at midnight on June 24, 2020. Emergency measures adopted by the government by way of regulation ceased to have effect and were automatically repealed.

World Law Group member firms recently collaborated on a Global Venture Capital Guide that covers more than 30 jurisdictions on investment approval processes, typical investment sectors and investment structures on Venture Capital deals (and more!).

On 10 March 2020, the ESG – Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR) will start to apply. SFDR disclosures will be applicable both to financial products (e.g., alternative investment funds (AIFs), undertakings for collective investments in transferable securities (UCITS), etc.) and financial market participants (e.g., alternative investment fund manager, UCITS management...

The bill of law no 7637 modifying the Luxembourg law of 5 April 1993 on the financial sector and the law of 6 April 2013 on dematerialised securities (the “Bill”) has been adopted on 21 January 2021* and aims at modernising the existing legal framework for dematerialized securities...

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...

Verification or declaration by the Luxembourg user company / extension of the Luxembourg core rules applicable to employees posted to Luxembourg / limitation of the maximum duration of the posting / introduction of the equal treatment principle in terms of remuneration. Please see full Publication below for more information.

As announced in October, new tax measures are included in the Luxembourg budget law for 2021 which was adopted by the Luxembourg Parliament on 17 December 2020 (the Law). The Law will be published in the coming days. Please see full Publication below for more information.

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,...

As we have noted previously, many countries have introduced creative new approaches to address the economic realities of the COVID-19 pandemic. Because employees continue to work from home and employers reconsider whether employees must return to the workplace at all, jurisdictions have implemented – and now are extending – measures to accommodate the needs and interests of both employers and...

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...

As we have previously highlighted, many countries have introduced creative new approaches to address the economic realities of the COVID-19 pandemic. As employees continue to work from home and employers reconsider whether employees must return to the workplace at all, some jurisdictions are implementing measures to accommodate the needs and interests of both employers and employees in the ever-c

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...

On August 8, 2020, in response to local meteorology reports of expected temperatures of above 95°F, Luxembourg’s Ministry of Health announced a “red alert warning,” and implemented a Heat Wave Plan. The Heat Wave Plan (i) advises that older individuals, infants, and those with chronic illnesses may be affected by such high temperatures and (ii) offers personal check-in and hydration services by...

The Luxembourg law of 10 July 2020 (the "Trust Register Law") establishing a Luxembourg Register of fiduciary contracts and trusts (the "Trust Register") will enter into force on 17 July 2020.

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...

Along with many European countries, the COVID-19 pandemic has affected employers and employees in Luxembourg. On March 17, 2020, the Government of Luxembourg issued a State of Emergency until June 25, 2020 and implemented several measures and guidance to prevent the spread of COVID-19.