Tax Research and Technical Group

Tax Research and Technical Group
Unique insight into the development of tax policy in Luxembourg

Today, tax regulations, at both the local and international level, are becoming more and more complex. Considering the current global economic context, this trend is expected to continue in the coming years.

In addition, achieving and maintaining profitability increasingly requires businesses to take into account the requirements of public and private stakeholders, in particular with regards to social objectives and sustainability. As a result of political pressure and heightened social awareness, the business practices of the past have been challenged and now the global community is asking for greater transparency in corporate tax strategies.

In response, PwC Luxembourg has set up a team of tax professionals, the Tax Research and Technical Group, to provide unique insight into the development of tax policy in Luxembourg and the impact of changes in international tax regulations.

Shaping our future tax environment

The Tax Research and Technical Group is dedicated to the analysis of evolutions in the Luxembourg tax system, focusing on the issues and opportunities that match political and economic concerns both locally and internationally. The Tax Research and Technical Group aims not only to maintain and foster an in-depth understanding of the Luxembourg tax system, but also to promote ideas on how the system could be improved by taking into account and anticipating trends and challenges in the EU and further afield. We contribute to shaping the tax environment by commenting on draft law proposals, liaising with professional associations and discussing tax matters with the Luxembourg tax authorities and government and releasing articles.

Developing tax knowledge and expertise

The Tax Research and Technical Group closely follows the evolution of the international tax environment, including European tax initiatives, in order to anticipate changes and identify opportunities for our clients. Recent developments at OECD and EU level have led markets to place more focus on technical knowledge and expertise.

Since expertise is the foundation of any tax service, the Tax Research and Technical Group coordinates PwC Luxembourg's tax practice to continuously raise the quality of our services. In this respect, we collect tax information in Luxembourg and abroad (draft law proposals, case-law, administrative practice, etc.) and disseminate the results of our work internally and on the market to enhance tax awareness among tax and non-tax experts.

The Tax Research and Technical Group works in close cooperation with PwC's EU Direct Tax group, which plays a leading role in developing cutting-edge EU law compliant solutions to help our clients. More information on this topic can be found here.

Micro-economic tools for businesses

Our Total Tax Contribution framework can help your company assess its overall tax contribution accurately; giving you far more details than just the share of corporate income tax paid every year. We will help you collect data, consider appropriate benchmarks and help you decide how to communicate your total tax contribution to stakeholders.

How can a Total Tax Contribution study help you?

Several reasons to launch a study for your company:

  • Better understand the value brought to your shareholders
  • Provide annual global tax data for external relations and corporate reporting
  • Manage tax costs
  • Show your value added in the Luxembourg economy
  • Benchmark all taxes/performances against industry peers
  • Ensure accurate social perception by demonstrating tax contribution/economic impacts
  • Show leadership in corporate reporting for tax or economic impacts. Be the first to launch the study in your industry sector
  • Strengthen decision-making
  • Support discussions with the tax authorities or other government bodies
  • Etc.

Read more about the publication Total Tax Contribution Luxembourg.

 

Other studies available

Our strong experience of market expectations in Luxembourg has also resulted in the implementation of two new business tools: the Economic Footprint Study and the Tax Transparency Study.

PwC Luxembourg's Economic Footprint Study aims to analyse the economic weight of your Luxembourg company and its contribution to your business sector and the national economy. This study will provide you with a clear view on the economic significance of your company compared with the Luxembourg market, as well as benefits in terms of image and reputation. It is also a very positive way to communicate your company's key figures to different public and private stakeholders.

In response to the growing calls for greater tax transparency, PwC's Tax Transparency Study provides businesses with a review of their tax reporting processes against the backdrop of recent trends in transparency requirements. Some companies have taken a head start in this area by being more open about important aspects of their tax affairs, such as tax strategy and policies, governance procedures and how to add value for stakeholders.