On 21 April 2016, less than one week before the traditional speech to the Nation, the Luxembourg Government presented some new tax measures for the 2017 tax reform as well as some amendments to the measures already presented on …
Luxembourg Government presents 2017 tax reform
On 21 April 2016, less than one week before the traditional speech to the Nation, the Luxembourg Government presented some new tax measures for the 2017 tax reform as well as some amendments to the measures already presented on 29 February 2016 at a press conference. We have outlined the main tax changes to be introduced for both companies and individuals. This is only an announcement, meaning that no agreement has been reached yet by the Government on the text of the draft law introducing these measures. Therefore, changes may still occur before the final text is presented to Parliament and additional changes may also be made in the course of the legislative process.
Luxembourg begins implementing automatic exchange of information on tax rulings at EU level
On 22 March, a draft law was presented to Parliament implementing Directive EU 2015/2376 into Luxembourg law. This draft law extends the scope of automatic exchange of information to information on tax rulings.
Bill introduces investment restrictions for SIFs and UCIs and amends SICAR and AIFM laws
On 18 January 2016 the Luxembourg government filed bill n°6936 with the Parliament introducing changes to the investment rules of Luxembourg investment funds governed by the Law of 13 February 2007 on specialised investment funds (SIF Law) and of those governed by part II of the law of 17 December 2010 on undertakings for collective investments (UCI Law). The bill will also amend the law of 15 June 2004 relating to investment companies in risk capital (SICAR Law) in order to align it with the SIF regime and validate administrative practices, as well as “clean-up” the law of 12 July 2013 on alternative investment fund managers (AIFM Law).
ILPA releases fee reporting template for private equity
In January of this year, the Institutional Limited Partners Association (ILPA) released in a fee reporting template for GP and LP use in the private equity industry. The template was developed based on input received from a wide range of private equity professionals and is the result of a consensus-based approach to transparency and standardization of fee disclosures.
The Hellas Case and the treatment of CPECs in Luxembourg
On 23 December 2015, the District Court of Luxembourg, sitting in commercial matters, took a landmark decision regarding a Luxembourg company that had financed a shareholding with Convertible Preferred Equity Certificates (CPECs). This is the first time that a Luxembourg court decided on the qualification of CPECs as debt and on the conditions of their redemption.
BEPS: OECD addresses the situation of non-CIV funds towards tax treaty benefits
On 24 March 2016, the OECD released a public discussion draft on issues and suggestions on the tax treaty entitlement of non-CIV (Collective Investment Vehicle) funds. This document is part of the follow-up work on Action 6 of the BEPS project which deals specifically with the fight against treaty abuse.
First quarter updates for AIFMs
The first quarter of this year has turned the attention of Luxembourg AIFMs towards the EU and the national regulators once more. At EU level, the European Securities and Markets Authority (ESMA) has amended the remuneration guidelines and the Q&A on the application of the alternative investment fund managers’ directive (AIFMD). More recently, it initiated work on the authorisation of loan-originating funds across Europe. At national level, Luxembourg AIFMs should pay close attention to the vote of the bill transposing the UCITS V directive, which would widen the scope of their EU passport.
For further information you can visit: http://www.atoz.lu/flipbook/atoz-insights-april-2016/index.html?c=7908
Keith O’Donnell & Samantha Merle
ATOZ Tax Advisers