Tax litigation in Luxembourg falls under two branches of the judiciary system: Administrative Courts and Judicial (Civil) Courts. Direct taxes, such as corporate income tax and net wealth tax, fall under the jurisdiction of Administrative Courts, while indirect taxes, including VAT and ...

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Establishing a securitization vehicle within a corporate structure enables companies to access lower-cost funding by deploying high-quality assets as collateral, thereby reducing funding costs. These are commonly used in international structure, and Luxembourg has a clear legal environment that supports securitization.

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Luxembourg’s tax authorities clarified the tax implications of simplified liquidations, treating them like mergers for tax purposes. The new rules allow tax-neutral treatment under certain conditions and preserve Net Wealth Tax (NWT) reserves. These changes benefit sole shareholders who are looking for efficient business closures.

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A Luxembourg SOPARFI is a fully taxable holding company that benefits from tax exemptions on qualifying dividends, capital gains, and certain intellectual property income. It is subject to corporate income tax, municipal business tax, and net wealth tax and may benefit from international tax treaties and European Directives.

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Luxembourg's wealth management companies (SPFs) are exempt from corporate income tax, municipal business tax, and net wealth tax, paying a 0.25% subscription tax on share capital and certain debts. SPFs can only hold passive financial assets and are prohibited from engaging in commercial activities or managing subsidiaries.

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Luxembourg's Private Wealth Management Company (SPF) is a non-commercial entity limited to holding and managing financial assets. Recent legislative changes, effective 1 January 2025, increased the minimum annual subscription tax from EUR 100 to EUR 1,000 and introduced new administrative fines up to EUR 250,000.

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