Participation Bonus Scheme (Article 115-13a LIR)
Discover Luxembourg's updated 2025 rules for participation bonuses under Article 115-13a LIR. Learn about tax benefits, limits, and compliance for employers and employees.
Tax disputes
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 ...
New rules on simplified liquidations tax regime
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.
The SOPARFI: a Luxembourg financial and IP holding
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.
Holding companies in Luxembourg: detailed overview of the SPF
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.
Favorable tax regime for highly skilled talent
Luxembourg’s updated inpatriates regime targets international talent by offering a flat 50% income tax exemption on salaries up to EUR 400,000 of impatriates remuneration. This ensures genuine expat recruitment, enhancing the country’s competitiveness.
The tax declaration of civil companies
This article clarifies the differences between the tax forms 200 and 300 in Luxembourg for transparent entities, in particular their taxable income categories and the situations in which they are or are not subject to municipal business tax (MBT).
Tax losses
Tax losses incurred by a company during a tax year can be carried forward and, in principle, offset against taxable profits in subsequent years, thereby reducing the amount of tax payable. There are, however, restrictions on carry-forward and set-off. Tax losses incurred prior to 31st ...
Tax structuring of real estate investments
Owning real estate is more or less tax-efficient depending on the investment objective.
The transfer of a company's registered office
This transfer would therefore no longer result in immediate taxation of deferred profits and unrealised capital gains.
Tax integration
A tax integration regime is nothing more and nothing less than a tax consolidation of a group or part of a group of companies.
The tax authorities' invoking of directors' liability
The corporate director must be diligent and prudent, they must respect the obligations of its various missions.
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