Tax News

• Flash News: Luxembourg real estate owning companies – minimum charge to corporate income tax
  It has been confirmed that Luxembourg companies whose principal assets are real estate held directly should not be subject to the minimum charge to corporate income tax.
  May 2012
  
  
• Flash News: European Court of Justice decision on French discrimination against foreign investment funds
  On 10 May 2012, the ECJ announced its decision concerning the compatibility of French dividend withholding tax with the EU principle of free movement of capital. The levying of French withholding tax on dividend payments made to foreign investment funds, resident either in the EU or in third countries, had been subject to taxpayer’s challenge based on the EU’s free movement of capital provision.
  May 2012
  
  
• Flash News: VAT and Discretionary portfolio management services
  On 8 May 2012, the Advocate-General has given her opinion in the case C-44/11 Deutsche Bank vs. Finanzamt Frankfurt am Main V-Höchst.
  May 2012
  
  
• Flash News: New Double Tax Treaty signed between Germany and Luxembourg
  On 23 April, Germany and Luxembourg signed a new double tax treaty (the "New Treaty"), which is to replace the original treaty dating back to 1958. The New Treaty is aligned to the OECD model, representing an internationally recognised standard.
  May 2012
  
  

• Informationsbrief Steuern - Ausgabe 2/2012
  Herzlich Willkommen zum zweiten Informationsbrief Steuern
  Nach einem äußerst erfolgreichem Start der ersten Ausgabe freuen wir uns Ihnen nun unseren zweiten Informationsbrief Steuern zu präsentieren. In diesem Brief haben wir eine Reihe von Themen ausgewählt, die für unsere deutschen Mandanten von besonderer Relevanz sein sollten.
  April 2012

• NewsAlert - Real Estate Tax Services: New Double Tax Treaty signed between Germany and Luxembourg
  On 23 April, Germany and Luxembourg signed a new double tax treaty, which is to replace the original treaty dating back to 1958. The new treaty is aligned to the OECD model, representing an internationally recognised standard. For real estate businesses, the most significant change is the introduction of a real estate-rich companies clause.
  April 2012
  
  
• Flash News: Performance fee deduction for GTax purposes
  Draft by the German Federal Ministry of Finance (BMF) is challenging the deductibility.
  Deutsche Fassung: Performance Fees
  April 2012
  
  
• Flash News: Draft for the revision of the German investment taxation
  On the 15 December 2011 a working group of the German fiscal authorities presented a concept paper to simplify the Investment Tax Act. Several German industry associations of the financial industry were invited to contribute their positions by means of a dedicated consultation on 25 January 2012, upon which the working group published a revised report on 2 March 2012.
  Deutsche Fassung: Entwurf zur Neukonzeption der Investmentbesteuerung in Deutschland
  April 2012
  
  
• Flash News: Klarstellende Rundschreiben der Luxemburger Steuerbehörden hinsichtlich der Besteuerung deutscher Grenzgänger
  Am 26 März 2012, haben die Luxemburger Steuerbehörden in mehreren Rundschreiben zur praktischen Umsetzung der Verständigungsvereinbarungen vom 26. Mai 2011 und vom 07. September 2011 zum Doppelbesteuerungsabkommen zwischen dem Großherzogtum Luxemburg und der Bundesrepublik Deutschland vom 23. August 1958 Stellung genommen.
  Version française: Imposition des travailleurs frontaliers allemands – Applications pratiques
  March 2012
  
  
• Flash News: Indian Union Budget 2012 – GAAR and Vodafone Case
  On 16 March 2012, Indian Finance Minister has delivered his budget speech for 2012-2013 providing for new tax proposals, and notably regarding General Anti-Avoidance Rules (GAAR) and the taxability of indirect transfers. We summarised below the key takeaways.
  March 2012
  
  
• Flash News: Asset Management:OeKB Reporting under the new Fund Taxation Regime?
  At the beginning of February 2012 the Austrian Ministry of Finance issued a first draft of the tax reporting ordinance, which will regulate the reporting requirements to the Oesterreichische Kontrollbank (OeKB) for domestic and the Austrian Ministry of Finance, the OeKB and representatives of the Austrian and foreign fund associations, the ordinance was finalised and will be published in the official gazette by the end of March 2012 the latest.
  March 2012
  
  
• Flash News: Place of taxation for transports of goods and their related services
  On 23 February 2012, the law proposal n°6355 which changes the rules regarding the place of taxation of transports of goods and their related operations (loading, unloading or handling of goods, etc.) was published. This law aims at avoiding double taxation for transports of goods carried out outside of the European Union.
  March 2012
  
  
• Flash News: Tax and social measures affecting individuals in 2012
  Several laws passed in early 2012 brought a few changes to personal income taxation and social security aspects. Below is an overview of those main changes. You will also find in this document a description of the measures relating to the index linking of salaries, incentives to hire unemployed workers and some information on the new European Union Blue Card which replaces the work permit for highly-qualified personnel.
  Version française: Mesures fiscales et sociales pour les personnes physiques applicables en 2012
  February 2012
  
  
• Flash News: Long-awaited proposed FATCA regulations issued
  On 8 February 2012, the Department of Treasury ("Treasury") and Internal Revenue Service ("IRS") issued the long-awaited proposed regulations providing guidance for foreign financial institutions ("FFIs"), non-financial foreign entities ("NFFEs"), and U.S. withholding agents to implement various provisions under the Foreign Account Tax Compliance Act ("FATCA") of 2009, which was enacted as Section 501 in the Hiring Incentives to Restore Employment Act of 2010.
  February 2012
  
  
• NewsAlert - Real Estate Tax Services: Proposed renegotiation of the France-Luxembourg double tax treaty
  It has been reported that France has made an approach to Luxembourg regarding the renegotiation of the existing double tax treaty which is in place between the two countries.
  February 2012
  
  
• Flash News: Top ranking U.S. Treasury official provides insight on issues affecting the implementation of FATCA
  The Foreign Account Tax Compliance Act (FATCA) is expected to have a pervasive impact on many financial institutions organized in the U.S. and globally. Although FATCA became law in 2010, certain provisions are scheduled to be effective beginning in 2013, with some provisions scheduled to take effect in 2014 and 2015. It is anticipated that FATCA will present challenging implementation issues that must be addressed in a compressed time frame.
  January 2012
  
  
• Flash News: New Guidance on US Withholding on Dividend Equivalent Payments on Swaps over U.S. Equities
  On 19 January 2012, new guidance was released regarding swap contracts over U.S. equities that call for "dividend equivalent payments" to be subject to up to 30 percent gross US withholding. The proposed rules provide a new, more expansive, standard for defining the scope of swaps that are subject to US withholding. Although the expanded scope for swaps over US equities giving rise to gross US-source dividends is only proposed, the proposed regulations highlight key factors in assessing which total return derivatives over US equities may be subject to withholding in the future.
  January 2012
  
  
• Flash News: VAT infringement procedure against Luxembourg
  The EU Commission calls on Luxembourg to change its rules on VAT in the case of independent groups of persons (cost-sharing arrangements).
  January 2012
  
  

• Informationsbrief Steuern - Ausgabe 1/2012
  Herzlich willkommen zu dem 1. Informationsbrief Steuern
  Mit unserer kürzlich veröffentlichten Broschüre „Wir können (fast) alles – und auch deutsch“ machen wir deutlich, dass wir einen besonderen Fokus auf unsere deutschsprachigen Mandanten haben. Hieran möchten wir zukünftig durch die Veröffentlichung eines deutschsprachigen Informationsbriefs zu steuerlichen Themen anknüpfen. Dieser soll nicht nur in deutscher Sprache erscheinen, sondern auch besonders auf die für unsere deutschsprachigen Mandanten relevanten Themen eingehen.
  January 2012

• PwC News Update: FS TAX / Asset Management
  Italy issued final regulations concerning Italian new tax reporting regime for Funds and SICAVs investing in eligible bonds (Decree 13 December 2011 – ref. n. 11A16232).
  January 2012
  
  
• Flash News: Russia-Luxembourg Double Tax Treaty: The Protocol was signed on 21 November 2011
  The Protocol to the Double Tax Treaty (DTT) between the Grand Duchy of Luxembourg and the Russian Federation (the "Treaty") was signed on 21 November 2011. The Protocol must be ratified after signing.
  November 2011
  
  
• Flash News: Decision on the VAT treatment applicable to transfers of non-performing receivables
  The Court of Justice of the European Union decided on 27 October 2011 that there is no service in the scope of VAT performed upon purchasing a discounted portfolio of non-performing receivables (distressed debt). This decision has a wide impact in the frame of debt restructuring processes, which were and remain an important topic for the financial services industry.
  October 2011
  
  
• Flash News: The EU Financial Transactions Tax Draft Directive and the Implications for the Global FS industry
  This Newsflash provides an overview of the draft directive released by the EU Commission today which seeks to introduce the financial transactions tax (“FTT”) within the EU by a specified start date of 1 January 2014. It is also the intention of the EU to explore ways to introduce the FTT at a global level through the G-20. Our comments and observations of the potential impact of these new developments on the business community are provided below.
  September 2011
  
  
• Flash News: Global Forum on transparency and exchange of information for tax purposes: Luxembourg successfully passes the OECD review
  Luxembourg received a positive report from the OECD Global Forum review assessing the conformity of the Luxembourg legal and regulatory framework with international standards in the area of the exchange of information.
  September 2011
  
  
• Flash News: Luxembourg Barbados double tax treaty now in force
  Luxembourg's Parliament ratifies the first double tax treaty between Luxembourg and Barbados (Law of 16 July 2011).
  September 2011
  
  
• Press Release: La gestion des responsabilités et risques en TVA : les enjeux futurs pour les responsables financiers
  PwC Luxembourg a organisé la 5ème édition de sa Conférence TVA ce mardi 20 septembre au CCRN-Abbaye de Neumünster. Les 140 responsables financiers réunis ont pu recevoir les dernières informations sur les évolutions récentes et futures en matière de TVA au niveau national et international et se munir de solutions pour gérer leurs responsabilités et risques en la matière.
  September 2011
  
  
• Flash News: Taxation of severance payments for German cross-border workers
  On 7 September 2011, a further amendment to the doubletaxation agreement (DTA) between Germany and Luxembourg was signed regarding the taxation of severance payments and compensation as a result of a dismissal and/or a redundancy scheme.
  This amendment is especially relevant for people residing in Germany and working in Luxembourg (German cross-border workers).
  Deutsche Fassung
  September 2011
  
  
• Flash News: Regelung für deutsche Grenzgänger
  Verständigungsvereinbarung zum Doppelbesteuerungsabkommen zwischen Deutschland und Luxemburg vom 26. Mai 2011.
  English version
  May 2011
  
  
• Flash News: Withholding tax refunds for Luxembourg funds – Recent developments in France
  Within the framework of the Fokus / Aberdeen cases, the European Commission (“EU Commission”) has decided to refer France to the European Court of Justice (“ECJ”) and to address the French discriminatory taxation of dividends paid to foreign pension and investment funds, which is considered to restrict free movement of capital. Indeed, French pension institutions and investment funds do not pay tax on their French dividend income, while their foreign equivalents are taxed.
  May 2011
  
  
• Flash News: Inheritance tax in Luxembourg: a more level playing field for heirs who live in the European Economic Area
  The European Commission launched infringement proceedings (IP/10/794 dated 24 June 2010) against Luxembourg, which used to require that non-resident heirs provide additional guarantees that they could pay the amount of inheritance tax owed. Following those proceedings, Luxembourg amended its legislation and published the Act dated 28 April 2011 relating to treasury guarantees as regards inheritance tax on 5 May 2011, thus making differential treatment between resident heirs and heirs who live in the European Economic Area a thing of the past.
  Version française
  May 2011
  
  
• Flash News: Deutsche Grenzgänger: BMF Schreiben – Besteuerung von Grenzpendlern nach Luxemburg
  Das Bundesministerium für Finanzen (BMF) hat am 12. April 2011 ein Schreiben bezüglich der Besteuerung von Arbeitseinkünften der nach Luxemburg einpendelnden Grenzgänger erlassen.
  May 2011
  
  
• Flash News: German cross border employees: Circulaire of the German ministry of finance
  On 12 April 2011 the German ministry of finance issued a circulaire in connection with the taxation of employment income earned by German cross border employees (frontier workers) for the tax years up to 2010.
  May 2011
  
  
• Flash News: Entrepôt TVA
  Le développement du Luxembourg en tant que place logistique est un objectif reconnu depuis quelques années. Le gouvernement espère notamment attirer au Grand-Duché des activités de stockage et de manutention de biens de forte valeur. Le projet de loi n° 6266 déposé le 24 mars 2011 illustre cette volonté.
  May 2011
  
  
• Flash News: Law proposal for the implementation of a VAT warehouse regime
  On 24 March 2011, law proposal n°6266 was issued for the implementation of warehousing arrangements other than customs warehousing and similar arrangements, in accordance with Articles 154 to 163 of Directive 2006/112/EC.
  May 2011
  
  
• Flash News: Luxembourg tax authorities issue additional guidance on transfer pricing
  The Luxembourg tax authorities issue an additional Circular clarifying the situation of entities that are mainly engaged in intra-group lending activities financed by borrowings.
  April 2011
  
  
• Flash News: Circulaire du directeur des contributions 95/2 du 31 décembre 2010
  Un nouveau régime fiscal destiné aux salariés internationaux remplissant certaines conditions augmente l'attrait de la place luxembourgeoise, notamment pour les groupes internationaux.
  April 2011
  
  
• Flash News: Exclusion of Luxembourg from Brazilian list of preferential tax regimes
  ADE RFB 3, dated 25 March 2011, definitively excludes Luxembourg from the list of countries with preferential tax regimes set forth by IN RFB 1.037 dated 4 June 2010.
  March 2011
  
  
• Flash News: What should you know about the proposal for a Common Consolidated Corporate Tax Base?
  EU Commission adopts proposal for an EU-wide CCCTB Directive.
  On 16 March 2011, the EU Commission has proposed a common system for calculating the tax base of businesses operating in the EU. This proposal is the result of intensive work of the EU Commission further to its study on Company taxation in the Single Market dated October 2001 (COM(2001) 582 final).
  March 2011
  
  
• Flash News: Circular CSSF 11/505 dated 11 March 2011
  Remuneration requirements within the financial sector and proportionality principle.
  On 10 December 2010 the Committee of European Banking Supervisors (CEBS) published their final guidelines for achieving compliance with the remuneration provisions of the EU Third Capital Requirements Directive (hereafter referred to as "Directive" or "CRD III"). The final guidelines provide further clarification notably on the application of proportionality rules to remuneration structures.
  March 2011
  
  
• Flash News: VAT refund claims covering the year 2009 - Deadline 31 March 2011
  With the implementation of the new VAT Refund Directive (as from 1 January 2010) the initial deadline for the submission of the VAT refund claims covering the year 2009 was 30 September 2010. The Directive foresees that the claims (8th Directive) must be submitted electronically via the portal of the Member States where the taxpayer is established. Due to many problems incurred by the different Member States for the implementation of the new systems it was proposed by the European Commission to extend the deadline to 31 March 2011.
  March 2011
  
  
• Press Article: ECJ decision enhances Luxembourg as prime location for asset finance deals
  The European Court of Justice rendered a decision on 22 December 2010, which is likely to lead to the increased attractiveness of Luxembourg for investment banks involved in asset finance transactions1. Also, industrial and commercial players may benefit from the decision.
  February 2011
  
  
• VAT News for Multinational Companies - Issue 2
  This newsletter is about VAT and the implementation of a Standard Audit file for Tax, named "FAIA", among other subjects.
  Issue 1, October 2010
  February 2011
  
  
• Press Release: Actualisation en matière de TVA: PwC publie 3 nouvelles brochures
  Afin de proposer une expertise et des services toujours plus adaptés aux besoins de ses clients, PwC a récemment publié trois nouvelles brochures : « The impact of VAT compliance on business », « Add Value to Tax: The VAT Refund to Foreign Businesses-guide » et « A Guide to VAT in the 27 EU Member States, Norway and Switzerland ».
  Ces trois ouvrages contiennent des informations à propos des systèmes de TVA et d’impôts sur les biens et les services comparables issues de 145 pays ; des précisions sur le remboursement de la TVA dans 34 pays ou encore sur les changements législatifs intervenus depuis janvier 2010 dans 29 pays européens.
  February 2011
  
  
• Press Article: Le point sur le sort des pertes fiscales reportables en cas de changement d’actionnariat
  Dans le cadre d’une affaire qui lui a été soumise, le juge fiscal luxembourgeois a récemment apporté d’intéressantes précisions en matière de report des pertes fiscales en cas de rachat de sociétés en pertes. Loin de passer inaperçue, la décision des juges a été rapidement commentée par l’Administration fiscale luxembourgeoise au moyen d’une circulaire1 émise en septembre dernier.
  January 2011
  
  
• Flash News: Luxembourg tax authorities issue guidance on transfer pricing
  The recent focus by the Luxembourg tax authorities on transfer pricing has resulted in a transfer pricing Circular describing the tax treatment for entities that are mainly engaged in intra-group lending activities financed by borrowings.
  January 2011
  
  
• Flash News: Withholding tax refunds for Luxembourg funds - recent developments in Finland, Hungary and Norway
  Finland: In December 2010, the regional tax office of Uusimaa has for the first time decided to refund the withholding tax levied on Finnish dividend payments to a listed Luxembourg SICAV.
  Hungary: On 5 January 2011 the Metropolitan Court of Budapest decided that the Hungarian tax administration must consider EU rules and related case law directly.
  Norway: A Luxembourg SICAV has been successful in obtaining a withholding tax refund in Norway.
  January 2011
  
  
• Flash News: Implementing Measures for EU VAT System
  A bit more than one year ago, the "VAT Package" entered into force. Changes it created in VAT rules are at the origin of a series of different interpretations among the Member States.
  January 2011
  
  
• Flash News: Tax credit for investment ("bonification d'impôt pour investissement")
  With respect to the Luxembourg investment tax credit ("bonification d'impôt pour investissement"), the European Court of Justice ruled on 22 December 2010 that limiting the benefit of the Luxembourg investment tax credit to domestic investments is contrary to the freedom to provide services. This decision opens interesting doors to Luxembourg taxpayers having eligible investments used in another EU Member State.
  January 2011
  
  
• Flash News: Neue Richtlinie zur Rechnungsstellung 2010/45/EU
  Am 13. Juli 2010 wurde die neue Richtlinie für die Rechnungsstellungsvorschriften von der Europäischen Kommission angenommen (Amtsblatt der Europäischen Union (22.7.2010 L189/1.8)). Diese Richtlinie enthält eine weitreichende Harmonisierung der europäischen Gesetzgebung im Hinblick auf die Regeln zur Rechnungserstellung und den Inhalt von Rechnungen. Die neue Richtlinie richtet ihr Augenmerk hauptsächlich darauf, dass die Steuerverwaltungen elektronische Rechnungen unter denselben Bedingungen akzeptieren wie dies für Rechnungen in Papierform der Fall ist. Darüber hinaus soll die Richtlinie Hindernisse bei der Übermittlung und Speicherung von elektronischen Rechnungen beseitigen.
  January 2011
  
  
• Flash News: LITL Circular no. 95/2
  On 31 December 2010, the Luxembourg tax authorities issued Circular no. 95/2 (hereafter the "Circular") implementing a new tax regime for qualifying international employees. For years, Luxembourg has strengthened its international position in the financial services market. However, unlike “neighbouring” countries (namely France, Belgium and the Netherlands), this position was not supported by any particular provision as regards the taxation of qualifying inbound international employees (hereafter referred as to the “Employees”). Employees moving to work in Luxembourg now have their very own tax regime. These new provisions will help make Luxembourg even more attractive as a place to work in an international environment.
  January 2011
  
  
• Flash News: Luxembourg - Mise à jour de l’obligation FAIA (Fichier d’Audit Informatisé AED)
  L’Administration de l’Enregistrement et des Domaines (AED) vient de publier des informations complémentaires pour la fourniture du FAIA, qui ont tenu compte des premières questions et remarques exprimées par les assujettis en collaboration avec PwC.
  English version
  Deutsche Fassung
  December 2010
  
  
• Flash News: Luxembourg - Adoption de nouvelles mesures fiscales pour les collectivités et les personnes physiques
  Le 2 décembre 2010, le Parlement grand-ducal a adopté le projet de loi 6166 portant introduction de nouvelles mesures fiscales concernant les personnes physiques et les collectivités. Suite à un dialogue entre le gouvernement et les partenaires sociaux, les mesures d’austrité budgétaire prévues par la réforme fiscale pour l’année 2011 ont été quelque peu adoucies.
  Deutsche Fassung
  December 2010
  
  
• Flash News: Aberdeen case (ECJ/C-303/07/18 June 2009)
  In our Flash News of 10 December 2009 we summarized the dividend withholding tax reclaim opportunities for Luxembourg domiciled funds which suffered withholding taxes in 2004 and 2005 in Hungary.
  December 2010
  
  
• Flash News: Luxembourg – Internal regulation of the Chamber of Commerce: Published
  On 3 December 2010, the Chamber of Commerce published internal regulation related to the Chamber of Commerce contribution.
  December 2010
  
  
• Flash News: Luxembourg – New tax measures for individuals and corporations: law enacted!
  On 2 December 2010, Luxembourg Parliament enacted bill n° 6166 introducing new tax measures for individuals and corporations. Further to discussions held between the Government and various stakeholders, some of the proposed austerity package included in the 2011 tax reform has been slightly softened.
  December 2010
  
  
• Flash News: Competency of the VAT authorities’ tax offices
  Following the ministerial regulation dated October 11th, 1990, which determines the competency of the VAT authorities’ tax offices, the tax records were assigned to the different offices on the basis of a territorial and nominative key allocation.
  Version française
  Deutsche Fassung
  November 2010
  
  
• Flash News: The modernisation of the accounting law: a (R)evolution for Luxembourg companies
  The Chamber of Deputy adopted on Thursday, November 18, 2010 the Bill 5976 on the introduction of the International Financial Reporting Standards ("IFRS") and the modernisation of the commercial accounting law as defined under the law dated December 19, 2002 (the "Accounting Law").
  Version française
  Deutsche Fassung
  November 2010
  
  
• VAT News for Multinational Companies
  Luxembourg VAT News - Issue 1
  October 2010
  
  
• Flash News: La mise en œuvre d’un plan de paiement n’est pas une opération exonérée de TVA
  Dans sa décision du 28 octobre 2010, la Cour a décidé que la mise en œuvre d’un plan de paiement par AXA (soit la collecte mensuelle de paiements des patients et le virement subséquent des sommes collectées aux dentistes) ne qualifie pas de service financier exonéré de TVA.
  English version
  Deutsche Fassung
  October 2010
  
  
• Flash News: Tax treatment of fees related to the management of investment funds
  In the circulars of 8 June 2010 and of 1 July 2010, the German Federal Ministry of Finance (BMF) comments on the tax treatment of fees relating to the management of investment funds that are invoiced directly to investors.
  Deutsche Fassung
  October 2010
  
  
• Flash News: Luxembourg - Law regarding the reorganisation of the Chamber of Commerce: adopted!
  After a long process which started in October 2008, Luxembourg Parliament adopted the bill regarding the reorganisation of the Chamber of Commerce on 19 October 2010.
  This law comes as the result of a number of cases brought before the Luxembourg Courts and challenging the legality of the Chamber of Commerce contribution.
  October 2010
  
  
• Flash News: Luxembourg - Introduction du FAIA (Fichier d'Audit Informatisé AED)
  Exportation des données comptables em format électronique standardisé. Depuis l’entrée en vigueur de la loi du 19 décembre 2008 concernant la coopération administrative entre les administrations fiscales au Luxembourg, tout assujetti qui dispose d’un système de comptabilité informatique doit être capable, sur requête de l’Administration de l’enregistrement et des Domaines (AED), de lui fournir toutes les données comptables existant sous forme électronique, suivant les modalités techniques que l’Administration détermine.
  English version
  Deutsche Fassung
  October 2010
  
  
• Flash News: New invoicing directive 2010/45/EU
  On 13 July 2010 the proposal for a new Invoicing Directive was adopted by the European Commission (Official journal of the EU (22.7.2010 L189/1.8)). The proposal concerns a far-reaching harmonisation of the European legislation concerning invoicing rules and the rules regarding the content of invoices. The new directive aims to ensure the acceptance by tax authorities of e-invoices under the same conditions as for paper invoices, and to remove legal obstacles to the transmission and storage of e-invoices.
  October 2010
  
  
• Flash News: Fin du régime Holding 1929
  Eclairage sur la palette de solutions proposées par l’environnement législatif luxembourgeois.
  La fin du régime transitoire prévue pour le 31 décembre 2010 marquera l’extinction du régime H29 et la transformation systématique en sociétés pleinement imposables des dernières entités bénéficiant dudit régime. Intéressons nous à la palette de solutions proposées par l’environnement législatif luxembourgeois dans le respect des contraintes et besoins des investisseurs.
  English version
  September 2010
  
  

Private Banking - European Tax Newsletter (September 2010) This third edition of our Private Banking European Tax Newsletter is dedicated to upcoming changes in various national tax jurisdictions, which will influence the tax situation and investment decisions of private clients. We are also very pleased to provide you with some insight from Lebanon, which we believe could play the role of a gateway to the Middle East region. Lebanon is recognised as a centre of expertise for Private Banking and maintains strong links with European markets. Tax transparency and the fight against tax evasion are still high on the agenda. Latest news on client reporting requirements and some national tax fraud investigations are provided in this regard. We hope you will enjoy reading this Newsletter.

• Flash News: Luxembourg bill no. 6170 transposing the UCITS IV Directive: a move towards increased tax efficiency for the Luxembourg fund industry
  On 6 August 2010, the Luxembourg Ministry of Finance submitted to Parliament a bill which transposes the European Directive 2009/65/EC of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to UCITS (this Directive being known as "UCITS IV") into domestic law.
  August 2010
  
  
• Flash News: Luxembourg - Legislation governing government financial aid for students in higher education
  Overview of the new eligibility requirements for child benefits
  Luxembourg Parliament recently passed bill no. 6148, the objective of which is to amend the law relating to government financial aid for students in higher education. The main objective of the law is to enable any young person domiciled in Luxembourg to enrol in higher education regardless of his / her parents' wishes or financial means.
  Version Française
  August 2010
  
  
• Flash News: Luxembourg – New tax measures for individuals and corporations: some more details
  The Luxembourg government approved a draft bill introducing a significant number of new tax measures for individuals and corporations and aimed at addressing the current financial and economic crisis. This draft bill was recently published on the Ministry of Finance’s website. This draft proposal confirms most of the previous announcements made by the Luxembourg Prime Minister in his traditional "state of the nation address" held on 5 May 2010.
  August 2010
  
  

• Flash News: Does your investment vehicle still qualify as fund according to German law?
  Foreign investment funds distributed in Germany usually report tax information to German investors under the Investment Tax Act. Although the rules to be respected in this context are complex, it is an established route, meeting investor expectations.
  August 2010
  
  

• Flash News: Luxembourg – Qatar double tax treaty is now in force
  Luxembourg Parliament recently voted the first Double Tax Treaty (DTT) between Luxembourg and Qatar (see law dated 31 March 2010 and published in the Luxembourg Gazette on 6 April 2010).
  The ratification process having finally being completed by both countries, the DTT entered into force on 9 April 2010.
  June 2010
  

Private Banking - European Tax Newsletter (June 2010) We are pleased to present the second edition of the Private Banking European Tax Newsletter. As outlined in our February edition, estate tax consequences are of increasing interest for HNWIs. This current newsletter keeps on focusing on issues, which are impacting wealth management, such as: Theft/sale of privacy data Tax evasion inquiries Double tax treaties and exchange of information Anti tax avoidance measures Tax residency issues Tax aspects relating to immovable property

• Flash News: New VAT Circular no. 723bis
  Impact for undertakings for collective investment and management companies
  In a circular issued on 30 April 2010, the Luxembourg VAT Authorities (“Administration de l’Enregistrement et des Domaines”) specify their interpretation on the application of the VAT exemption for fund management services, particularly where individual activities are outsourced.
  Version Française
  Deutsche Fassung
  May 2010
  
  
• Press Article: Les pertes fiscales libérées de la théorie du « Mantelkauf »
  La jurisprudence luxembourgeoise vient d’apporter d’intéressantes précisions en matière de report des pertes fiscales en cas de rachat de sociétés déficitaires. Les juges luxembourgeois nous rappellent que la théorie de l’abus de droit que le Pr Cozian qualifiait de « châtiment des surdoués de la fiscalité », a vocation à s’appliquer et nous donnent quelques indices quant à son caractère approprié au cas d’espèce.
  May 2010
  
  
• Flash News: US Tax Reporting and its Impact on the AM Industry
  The United States of America (US) have on March 18, 2010, enacted new tax provisions which tighten the US tax reporting for the financial sector. Every financial intermediary will in principle be asked to sign a contract with the US tax authorities and to comply with certain reporting obligations. In case of non-compliance, expanded withholding tax might significantly impact the performance of investment products. US dividends, US interest and gross proceeds from the sale of US assets might be subject to 30% withholding tax. Although US tax reporting was until today a topic dealt with by banks, actors in the investment management industry need to be aware of the changes and potentially adapt their business model. In addition, changed withholding tax provisions regarding certain derivative transactions might also impact the product offering.
  Deutsche Fassung
  May 2010
  
  
• Cross-border recovery of tax claim in the EU
  The European Council has adopted a new directive on the mutual assistance for the cross-border recovery of tax claims (the "Directive"). This change is caused by the weakness of the existing system, while recovery assistance is essential for the proper functioning of the internal market. It ensures fiscal neutrality and the removal of discriminatory protective measures in cross-border transactions designed to prevent fraud and budgetary losses.
  May 2010
  
  
• Luxembourg – State of the nation address
  New tax measures for individuals and corporations
  The Luxembourg Prime Minister held his traditional "state of the nation address" on 5 May 2010. During his speech, Mr Juncker outlined key possible tax measures for individuals and corporations, which, if enacted, would be applicable as from tax year 2011. Considering the current economic context, the proposed measures are part of an austerity package aimed at curtailing Luxembourg’s budget deficit and public debt, which are however amongst the lowest within the EU. The rigorous measures should not negatively impact Luxembourg’s competitiveness as a main business centre.
  May 2010
  
  
• EC Regulation 883/2004 enters into force on 1 May 2010
  After 38 years of faithful and dedicated service, EU Regulation 1408/71 governing the application of European social security rules has been replaced by new EC Regulation 883/2004 and its implementation regulation. .
  Version Française
  May 2010
  
  
• Tax treaty benefits for funds: OECD proposals
  April 2010
  
  
• Option for a 10% taxation for European qualifying interest income from private investments
  Amendments to the so-called "Relibi law".
  April 2010
  
  
• Corporate Criminal Liability
  Introduction in the Luxembourg Criminal Code
  A Luxembourg law of 3 March 2010 has introduced Corporate Criminal Liability. This evolution of the Luxembourg criminal legislation was required by international agreements on combating money laundering, trafficking in human beings and bribery. These agreements consider that imposing a corporate criminal liability is vital to prevent and punish these offences.
  April 2010
  
  
• Echange de renseignements et secret bancaire
  Vote du projet de loi (n°6072) portant approbation des conventions signées par le Luxembourg et prévoyant la procédure applicable en matière d’échange de renseignements.
  L’engagement clairement annoncé par le gouvernement luxembourgeois le 13 mars 2009 de se rallier intégralement aux standards de l’OCDE en matière d’échange de renseignements sur demande a bien été respecté.
  En témoigne le vote de la loi le 17 mars 2010 dont l’objet est double : 1. Ratification de conventions et d’avenants pour permettre leur entrée en vigueur et 2. Organisation des modalités pratiques liées à l’échange de renseignements. Le vote de cette loi figure désormais comme une date clé et signe l’aboutissement d’un processus politico-juridique amorcé il y a plusieurs mois.
  English version
  March 2010
  
  
  

Private Banking - European Tax Newsletter (February 2010) Tax aspects are an important element of private banking services. Over the last months, we have observed a greater connection in this respect. The clear trend towards transparency and increasing disclosure requirements has reinforced the need of Private Banks to position themselves

• Savings Directive update
  Proposal for a Council Directive amending Directive 2003/48/EC on taxation of savings income in the form of interest payments.
  February 2010
  
  
• News regarding the consideration of equalisation for tax purposes
  During a meeting held on January 19, 2010, the German Federal Ministry of Finance (Bundesministerium der Finanzen - BMF) declared that it intends to accept the calculation of equalisation only for (German) tax purposes. The BMF confirmed its position to consider negative income from the purchase of investment funds at investor level only if the investment fund applies equalisation for tax purposes.
  Deutsche Fassung: Neue Entwicklungen hinsichtlich der Anerkennung des steuerlichen Ertragsausgleichs für Investmentfonds
  January 2010
  
  
• Luxembourg – UAE double tax treaty is now in force
  As mentioned in our Flash NewsAlert dated 29 April 2009, Luxembourg Parliament voted the Double Tax Treaty (DTT) between Luxembourg and the United Arab Emirates (UAE) on 29 May 2009.
  The ratification process having finally being completed by both countries, the DTT has now entered into force (see publication in the Luxembourg Gazette on 28 December 2009).
  January 2010
  
  
• New Inheritance Tax Law dated 18 December 2009: Residents and non-residents to be put on an equal footing
  Luxembourg tax law provides for different inheritance duties depending on the domicile of the deceased person. Rules applying to the estate of Luxembourg residents (i.e. "droits de succession") used to be more favourable than those applying to the estate of non-residents (i.e. "droits de mutation à cause de mort"). In compliance with EU principles, the law of 18 December 2009 ends this discrimination, by granting the same deductions and exemptions in both situations.
  December 2009
  
  
• Aberdeen Case (ECJ/C-303/07/June 18, 2009): Withholding tax claims in Hungary
  In June 2009, the European Court of Justice issued its decision in the Aberdeen case. For further information, please refer to our previous flash news regarding this decision.
  In light of the Aberdeen decision, PwC Hungary identified the opportunity to reclaim Hungarian all withholding tax suffered in 2004 and 2005 by Luxembourg investment funds, which invested into Hungarian shares. Action has to be taken before 31 December 2009.
  December 2009
  
  
• Important amendment of US withholding and reporting regulations
  On October 27, 2009, a new US legislation has been introduced which will significantly change US withholding tax and reporting obligations. This is likely to impact financial service and asset management industry.
  Deutsche Fassung: Wesentliche Änderungen bei US-Quellensteuern und Meldepflichten
  November 2009
  
  
• Press Article: Le point sur les régimes fiscaux applicables au Luxembourg - Personnes physiques et collectivités
  Depuis l’adoption de la réforme fiscale 2008 par le gouvernement luxembourgeois mi-décembre dernier, différentes mesures sont venues s’inscrire dans la lignée de la politique d'allègement fiscal entamée il y a deux ans. L’objectif : atténuer les effets de la crise financière en redonnant du pouvoir d'achat et de la confiance aux consommateurs. Cet article propose de faire le point sur les régimes applicables et les dernières nouveautés fiscales au Grand-Duché, d’une part à travers le régime des personnes physiques, d’autre part celui des collectivités.
  September 2010
  
  
• Fight against VAT fraud in missing trader schemes - Proposal for a EC Directive
  The European Commission (“EC”) adopted a proposal for an optional and temporary application of the reverse charge mechanism to supplies of defined goods and service to business clients. This proposal tackles Missing Trader Intra-Community Fraud, commonly called carousel fraud. Broadly speaking, this type of fraud implies a supplier charging VAT to his customer but not paying it over to the tax authorities and "going missing", whereas his taxable customers benefit from a corresponding credit/refund. Under the reverse charge mechanism, the VAT is not charged by the supplier; it is payable by the customer, who can in principle deduct this selfinvoiced VAT at the same time.
  September 2009
  
  
• Press Article: Pertes fiscales et théorie du « Mantelkauf »
  Le Tribunal Administratif luxembourgeois se prononce sur le sort de pertes en cas de rachat d’une société déficitaire et de changement de son activité.
  September 2009
  
  
• Introducing the electronic VAT system (“eTVA”)
  Under the bill whose purpose is to transpose the European VAT package directives into Luxembourg legislation, some taxable persons will be required to electronically submit their VAT returns and recapitulative statements of intra-Community deliveries. Using the electronic VAT system (hereafter “eTVA”) set up by the Luxembourg VAT authorities (the Administration de l’Enregistrement et des Domaines), taxable persons can already file and access their VAT returns online (periodic returns, yearly returns and recapitulative statements). The new filing rules would be effective 1 January 2010 and this gives companies the opportunity to start getting ready now for the use of the eTVA tools.
  Version française : Système eTVA
  Deutsche Fassung: Das eTVA System
  August 2009
  
  
• Press Article: The Luxembourg fiscal unity regime: Practical aspects
  The Luxembourg fiscal unity regime has been increasingly used over the last few years, both by Luxembourg based entities and international groups. The principle of a Luxembourg fiscal unity regime between Luxembourg resident capital entities has been in force for many years and thanks to the amendments to the conditions for applying the regime made in 2002 and the enlargement of the scope of fiscal unity in 2004, the fiscal unity regime has sparked new interest.
  July 2009
  
  
• Donations to non-profit institutions in European Union Member States and EFTA Member States are tax deductible in Luxembourg
  In the future, the tax deduction of donations to non-resident non-profit institutions will be allowed and governed by a new circular issued by the Luxembourg direct tax authorities.
  Version française : Les dons versés à des organismes d’utilité publique ayant leur siège dans un État membre de l’Union européenne ou de l’AELE sont déductibles à Luxembourg
  Deutsche Fassung: Spenden an gemeinnützige Institutionen in EU-Mitgliedstaaten und EFTA Staaten sind steuerlich in Luxemburg abzugsfähig
  July 2009
  
  
• Changes to the tax consequences of fund mergers under the German Investment Tax Act
  The Upper House of the German parliament (Bundesrat) has adopted on Friday, 10 July 2009 a revision of the Investment Tax Act. Under the new rules, mergers of or with funds in the form of a SICAV can also benefit from a tax neutrality on investor level.
  Deutsche Fassung: Änderung der steuerlichen Konsequenzen bei Verschmelzungen von Investmentfonds nach dem Investmentsteuergesetz
  July 2009
  
  
• Luxembourg is back on the OECD “white” list, dated July 8 2009
  According to the press release published today on the OECD’s website (Organisation for Economic Co-operation and Development), Luxembourg has officially been removed from the OECD “grey” list of “non cooperative jurisdictions” (i.e. jurisdictions that have committed to the internationally agreed tax standard, but have not yet substantially implemented it).
  July 2009
  
  
• Luxembourg signs Protocols amending Double Tax Treaties with the U.S. as well as with other countries
  On May 20, Luxembourg Minister for the Treasury and Budget, Luc Frieden, and US Ambassador to Luxembourg, Anne Wagner, signed a protocol amending the April 3, 1996 double tax convention between both countries by introducing a revised article 28 for information sharing in compliance with OECD (Organization for Economic Co-operation and Development) standards. This agreement represents the second - out of nine recent agreements - which abides by OECD standards on international tax cooperation. This is also the first one entered into with an OECD and G-20 member further to the announcement made by Mr. Frieden on March 13, 2009 regarding the commitment by the Luxembourg government in this respect while maintaining compatibility with its bank secrecy rules.
  July 2009
  
  
• The Research, Development and Innovation Act dated 5 June 2009
  Luxembourg Parliament just passed new legislation to promote research and innovation in order to encourage businesses to develop their innovation potential. The new legislation is effective 1 July 2009
  Version française : Loi du 5 juin 2009 concernant la promotion de la recherche, du développement et de l’innovation
  Deutsche Fassung: Gesetz vom 5. Juni 2009 über die Förderung der Forschung, Entwicklung und Innovation
  July 2009
  
  
• Press Article: « Paquet TVA » : ses implications, secteur par secteur
  Il s’agit du changement le plus important intervenant au niveau européen depuis l’instauration du régime transitoire en 1993. Au-delà de la simplification proposée aux entreprises, le paquet TVA va engendrer une série de conséquences plus ou moins positives et de nouvelles obligations déclaratives qu’il leur faut anticiper.
  June 2009
  
  
• Standard Chart of Accounts
  The law dated December 19, 2002 (“the Accounting law”) prescribed the use of a detailed chart of accounts, and updated the “Code de Commerce” accordingly, although the publication of this chart of accounts was left for a future Grand-Ducal Regulation (“GDR”). The release of the long awaited chart of accounts is a major step in the on-going modernisation of the financial reporting and of the accounting rules in Luxembourg which began in 2002. In the near future, it should result in the creation of a “Centrale des Bilans” in Luxembourg. In addition, the Luxembourg authorities have decided to use the “Plan Comptable Normalisé” or “PCN” as a working tool as part of their policy to reduce administrative burdens faced by Luxembourg companies.
  Version français: Plan Comptable Normalisé
  Deutsche Fassung: Standard-Kontenplan
  June 2009
  
  
• The Aberdeen case (ECJ/C-303/07/June 18, 2009) Discriminatory EU withholding tax on dividends ruled illegal by European Court
  Investment funds can claim millions back in overpaid dividend withholding tax from governments across Europe, following a European Court of Justice (ECJ) ruling that a Finnish tax withheld on dividends paid to foreign investment funds is considered illegal.
  The ruling in the case of Aberdeen Property Fininvest Alpha Oy is one of the first cases in the European Courts to consider the legality of an EU member state levying dividend withholding taxes only on dividends paid to non-resident investment funds while exempting domestic investment funds from such taxes.
  Deutsche Fassung: Das EUGH-Urteil Aberdeen gegen Finnland (EUGH/C-303/07/18 Juni 2009): Der Europäische Gerichtshof bestätigt, dass diskriminierende Kapitalertragsteuern innerhalb der EU auch bei Zahlungen an Investmentfonds gegen Gemeinschaftsrecht verstoßen
  June 2009
  
  
• Press Article: Holding companies in the EU: The quest for substance
  In this article, the authors will firstly analyse Luxembourg’s substance requirements in terms of recognising such companies as resident for both corporate and tax purposes. Subsequently, the authors will analyse anti-conduit rules and practices that source countries may impose with regards to the substance requirements needed to apply relief from withholding tax, and the need for these to comply with EC Treaty protected freedoms.
  May 2009
  
  
• Luxembourg Signs Protocol - Amending Double Tax Treaty with the U.S.
  On May 20, Luxembourg Minister for the Treasury and Budget, Luc Frieden, and US Ambassador to Luxembourg, Anne Wagner, signed a protocol amending the April 3, 1996 double tax convention between both countries by introducing a revised article 28 for information sharing in compliance with OECD (Organization for Economic Co-operation and Development) standards. This agreement represents the second in its kind - next to the recently signed tax treaty with the Kingdom of Bahrain – which abides by the OECD standards on international tax cooperation, and the first one concluded with an OECD and G-20 member further to the announcement made by Mr. Frieden on March 13, 2009 regarding the commitment by the Luxembourg government in this respect while maintaining compatibility with its bank secrecy rules.
  May 2009
  
  
• Luxembourg – India double tax treaty voted on by Luxembourg Parliament
  After several years of negotiation, the Luxembourg Government signed a Double Tax Treaty (DTT) with India on 2 June 2008. The DTT was voted on by Luxembourg Parliament on 6 May 2009 and should enter into force once the notification process is completed in both States. Then, the DTT’s provisions will be effective as from (i) tax years beginning on or after 1 April of the year following the entry into force of the DTT with respect to Indian taxes and (ii) tax years beginning on or after 1 January of the year following the entry into force of the DTT with respect to Luxembourg taxes.
  May 2009
  
  
• Luxembourg – UAE double tax treaty voted on by Luxembourg Parliament
  After several years of negotiation, the Luxembourg Government signed a Double Tax Treaty (DTT) with the United Arab Emirates (UAE) on 20 November 2005. Luxembourg Parliament just passed the bill into law on 29 April 2009.
  Deutsche Fassung: Abstimmung des luxemburgischen Parlaments über das Doppelbesteuerungsabkommen Luxemburg – VAE
  April 2009
  
  
• Summary of recent Luxembourg government’s statements on tax-related matters
  Current political discussions seek to achieve a legitimate goal: fight against “tax havens” and tax fraud against a background of financial and economic turmoil. The Luxembourg authorities have made clear over the last six months that they were fully willing to cooperate in the fight against tax fraud while they remain determined to enhance Luxembourg's tax competitiveness. Luxembourg Premier Jean-Claude Juncker confirmed this in his State of the Nation Address held before Luxembourg Parliament on 21 April 2009. Today, the Luxembourg authorities pride themselves on the fact that G20 member states have come to understand the Luxembourg regime better and have managed to avoid the confusion which arose in the past.
  April 2009
  
  
• Luxembourgish government measures for economic recovery
  On March 6, 2009, the government approved a set of substantial measures, complementary to the first package of measures, in order to minimize the impact of the crisis and prepare the country to bounce back from it. As such, the following bills were submitted:
  Bill proposing a temporary aid system for economic recovery (n° 6003)
  French version: Mesures de relance économique du gouvernement Luxembourgeois
  March 2009
  
  
• Press Article: De nouvelles réformes fiscales bénéfiques dans un contexte de crise
  Faisant suite aux déclarations du Gouvernement luxembourgeois lors desquelles le Premier ministre Jean-Claude Juncker annonçait sa volonté de s’inscrire dans une politique d’allègement fiscal, la chambre des députés a promulgué fin 2008 divers textes visant à réformer la fiscalité du pays pour l’année 2009.
  February 2009
  
  
• Significant VAT refund opportunities - HMRC concedes on 3 year capping Claims invited for overpaid output tax in addition to underclaimed input tax
  HM Revenue and Customs (HMRC) has issued Revenue & Customs Brief 07/08 inviting taxpayers to submit retrospective claims for VAT overpaid prior to the introduction of the current three-year cap. All affected businesses should now identify, quantify and submit their claims as soon as possible.
  February 2009
  
  
• Luxembourg – Hong Kong double tax treaty is now in force
  As mentioned in our previous Flash News dated 10 December 2008, Luxembourg Parliament voted the Double Tax Treaty (DTT) between Luxembourg and Hong Kong on 19 December 2008.
  The ratification process having finally being completed by both countries on 20 January 2009, the DTT has now entered into force.
  February 2009
  
  
• Luxembourg - Corporate Tax reform for 2009 – Further update
  As mentioned in our previous Flash News Alert dated 17 December 2008, Luxembourg Parliament introduced a significant number of new tax measures in the law of 19 December 2008 (the "Law").
  January 2009
  
  
• Zusammenarbeit zwischen Behörden und Massnahmen zur Bekämpfung von Steuerbetrug und -hinterziehung
  Am 17. Dezember 2008 verabschiedete das Luxemburger Parlament den Gesetzentwurf Nr. 5757.
  January 2009
  
  
• Annual Tax Law passed the Upper House of the German Parliament
  The Annual Tax Law 2009, as adopted by the Bundestag (the Parliament’s Lower House) on 28 November 2008, passed the Upper House. It contains a number of changes which are relevant to the Investment Management Industry.
  Deutsche Version: Jahressteuergesetz 2009 vom Bundesrat verabschiedet
  December 2008
  
  
• Cooperation among authorities and measures to combat tax fraud and tax evasion Bill no. 5757
  Luxembourg Parliament passed bill no. 5757 into law on 17 December 2008.
  December 2008
  
  
• Luxembourg - Corporate Tax reform for 2009
  On 16 December 2008, Luxembourg Parliament enacted the 2009 tax reform by adopting the various tax measures provided for in bills no. 5924 and 5913.
  Deutsche Version: Luxemburg – Unternehmenssteuerreform in 2009
  December 2008
  
  

• Luxembourg – Hong Kong double tax treaty: ratification process in progress in Luxembourg
  The Luxembourg government launched the ratification process of the Double Tax Treaty (DTT) signed with Hong Kong on 2 November 2007, by submitting the bill to the approval of the Luxembourg Parliament on 4 April 2008. The Luxembourg Parliament just passed the bill into law on 10 December 2008.
  December 2008
  
  
• Abgeltungsteuer – Ausweitung der besonderen Übergangsbestimmungen für Spezialfonds und steueroptimierte Geldmarktfonds
  Im Schreiben vom 22. Oktober 2008 hat das Bundesministerium der Finanzen (BMF) die bereits für Spezialfonds bestehenden Einschränkungen des Bestandsschutzes in Bezug auf die Abgeltungsteuer auch auf andere Investmentvermögen ausgeweitet.
  English Version: German Flat Rate Tax – Extension of the specific transition rules for specialised investment funds and tax-optimised money market funds
  November 2008
  
  
• Qualified Intermediaries: US reporting and compliance alert: Proposed changes to QI agreement and QI audit guidelines
  On October 14, 2008, the US tax authorities (IRS) announced changes to the QI agreement as well as to the QI audit guidelines. At a conference organized by the British Bankers’ Association on October 16, 2008, Senior Executives of the IRS explained the proposed rules and provided further information on current discussions. In addition, the IRS announced the release of new draft rules on reporting and withholding before the year end.
  October 2008
  
  
• Luxemburg - Haushaltsentwurf 2009 und neue steuerliche Maßnahmen
  Am 1. Oktober legte die luxemburgische Regierung dem Parlament einen Gesetzesentwurf zu verschiedenen steuerlichen Maßnahmen vor (realisiert durch den Haushaltsentwurf und durch ein gesondertes Gesetz). Der Gesetzesentwurf bestätigt einerseits die bisherigen Ankündigungen des luxemburgischen Ministerpräsidenten, die dieser im Mai diesen Jahres in der traditionellen „Rede zur Lage der Nation“ gemacht hatte. Darüber hinaus enthält der Entwurf weitere steuerliche Maßnahmen, die für die Wirtschaft von wesentlicher Bedeutung sind.
  October 2008
  
  
• New Tax Measures for Individuals in the Pipeline
  In the state of the nation address given on 22 May 2008, Luxembourg Prime Minister Jean-Claude Juncker had announced that taxes would be lowered. This bill confirms the announcement and provides for a number of individual tax measures. There is more good news (for now?): taxes on company cars made available to employees will not be increased under the bill.
  Version française: Nouvelles mesures fiscales envisagées
  October 2008
  
  
• Luxembourg – Draft 2009 budget and new tax measures
  On 1st October, the Luxembourg government put forward to
  Parliament a proposal for new tax measures (provided for in the
  draft budget and in a separate bill). This proposal confirms
  some of the previous announcements made by the Luxembourg
  Prime Minister in the traditional "state of the nation" address
  given in May 2008.
  October 2008
  
  
• Abschaffung der Luxemburger Gesellschaftsteuer
  Das Luxemburger Finanzministerium hat dem Parlament einen Gesetzesentwurf zur Umsetzung der EU Richtlinie vom 12. Februar 2008 (Richtlinie 2008/7) bezüglich der indirekten Steuern auf die Ansammlung von Kapital (“droit d’apport”) vorgelegt. Nach dem Entwurf soll die Gesellschaftsteuer in Luxemburg ab dem 1. Januar 2009 abgeschafft werden.
  September 2008
  
  
• Abolition of capital duty in Luxembourg: another step forward!
  The Luxembourg authorities are currently preparing a bill in order to transpose the EU capital duty Directive of 12 February 2008 (Directive 2008/7/EC) into Luxembourg domestic legislation. According to the draft bill (in its current version as of to date which has not yet been presented to Parliament), capital duty would be repealed in Luxembourg as from 1 January 2009.
  September 2008
  
  
• Regulation suggestions of the Federal Ministry of Finance on the taxation of "Insurance mantles"
  We have been aware that some suggestions were made by the Federal Ministry of Finance (BMF) for amending the taxation of life insurance contracts. The BMF has targeted contracts that are commonly referred to as "Life insurance wrappers".
  September 2008
  
  
• Qualified Intermediaries: US reporting and compliance alert
  The QI program has recently been the focus of several discussions involving the IRS, ths US legislator and some international accounting firms.
  August 2008
  
  
• Changes to the tax regime governing directors' fees
  Version française: Tantièmes : modification du régime fiscal
  In a recently-issued circular (Circular LIR 94/4, hereafter "The Circular"), the Luxembourg tax authorities have introduced a scheme under which operational expenses connected with directors' fees may be deducted on a lump-sum basis.
  July 2008
  
  
• 10% Taxation for interest income: from private investments (amendments to the so called Relibi law).
  The Luxembourg parliament passed a bill in a first reading to amend the so-called "Relibi law" of the 23 December 2005 on the taxation of interest income recieved by individuals resident in Luxembourg.
  June 2008
  
  

• Luxembourg – Losses of EU Permanent Establishments - Update
  On 15 May 2008, the European Court of Justice (ECJ) ruled in the Lidl Belgium case (C-414/06) that it is not contrary to EC law for a company located in one Member State (MS) not to be able to deduct the losses incurred by its Permanent Establishments (PE) situated in another MS, where, by virtue of a double tax treaty (DTT), that PE’s income is taxed in the latter MS and the losses can be carried forward against that PE’s income in future accounting periods.
  June 2008
  
  
• Luxembourg 2009 budget announcement
  Luxembourg Prime Minister Jean-Claude Juncker gave his traditional state of the nation address.
  May 2008
  
  
• Chamber of commerce contributions
  In a decision dated 17 April 2008 (n°23755C), the administrative court confirmed the first instance judgment of 24 October 2007 (n°22636) that invalidated a notice of assessment from the Chamber of Commerce.
  April 2008
  
  
• Luxembourg – Losses of EU Permanent Establishments
  The Advocate General’s (AG) opinion in the recent Lidl Belgium case brought before the EU Court of Justice (“ECJ”) may provide taxpayers with new arguments to claim cross-border relief and ask for the deduction of tax losses generated by their EU permanent establishments at head office level.
  March 2008
  
  
• Flash News: New VAT rules on VAT representation: Adoption and publication of the Law and Grand- Ducal Regulation
  Further to the publication on February 28, 2008 of the law dated February 23, 2008, a new article 66bis introduces the system of tax representation for VAT purposes into Luxembourg VAT legislation.
  March 2008