sep 19 2010
Luxembourg Holding
Luxembourg Holding Company
To view notes, click on the *
| Topic | Details |
|---|---|
| Establishing HoldCo | |
| Are advance rulings available? | Yes |
| Are there restrictions on activities? | No |
| Are there substance requirements? | No |
| Is capital duty payable? | No |
| Is there a special tax regime for holding companies? | Yes |
| Is there CFC or equivalent legislation? | No |
| Number of jurisdictions with active income tax treaties (minimum) | 60 |
| What is the effective corporate tax rate? | 21.84% + 6.75% Municipal Business Tax |
| Tax Treatment of Disposal of HoldCo | |
| Is any tax payable in HoldCo country on disposal of HoldCo shares by a nonresident corporate shareholder? | Generally no, some exceptions |
| Tax Treatment of Payments by HoldCo | |
| Dividends: What is the (non-treaty / treaty) rate of withholding tax on dividends paid to nonresidents? | 0% (non-treaty, treaty and EU) |
| Interest: Are there thin cap limits or other restrictions on interest deductibility? | Yes/No |
| Interest: Is interest on loans to acquire subsidiaries deductible against HoldCo’s profits? | Yes |
| Interest: What is the (non-treaty / treaty) rate of withholding tax on interest paid to nonresidents? | 0% (non-treaty, treaty and EU) |
| Liquidation payments: Is there withholding tax on liquidation payments? | No |
| Taxation of HoldCo Income | |
| Dividends: Does the foreign subsidiary have to meet any substance requirements? | No |
| Dividends: Does the foreign subsidiary have to pay tax locally? | 10.5% if non-EU |
| Dividends: How are dividends taxed? | Exempt/N/A |
| Dividends: What is the required holding period? | 1 year or commitment to hold for 1 year |
| Dividends: What is the required percentage ownership? | 10% or acquisition cost of at least EUR 1.2 million |
| Gains on disposal of participations: Are capital losses deductible? | Yes |
| Gains on disposal of participations: Does the foreign subsidiary have to meet any substance requirements? | No |
| Gains on disposal of participations: Does the foreign subsidiary have to pay tax locally? | 10.5% if non-EU |
| Gains on disposal of participations: How are gains on the sale of a subsidiary taxed? | Exempt/N/A |
| Gains on disposal of participations: Is relief available for the write-down in value of subsidiaries? | Yes |
| Gains on disposal of participations: What is the required holding period? | 1 year or commitment to hold for 1 year |
| Gains on disposal of participations: What is the required percentage ownership? | 10% or acquisition cost of at least EUR 6 million |
| Is joint taxation for groups available? | Yes |
