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Carried Interest 2.0: Luxembourg Modernises Its Tax Treatment for Fund Managers

On 24 July 2025, a draft bill (the Bill) proposing significant amendments to the law of 4 December 1967 on income tax and the law of 12 July 2013 on alternative investment fund managers (AIFMs) was submitted to the Luxembourg...more

Tax Update in Luxembourg Regarding Interest Rates for Shareholder Current Accounts

On 29 January 2025, the Luxembourg tax authorities published Circular L.I.R. n° 164/1 (Circular), which replaces the previous circular L.I.R. n° 164/1, dated 23 March 1998. The Circular updates the rules related to interest...more

New Tax Measures Designed to Reinforce Luxembourg’s Attractiveness

On 17 July 2024, the Luxembourg government introduced, under new Bill n° 8414, a comprehensive legislative package meant to modernise and enhance Luxembourg’s tax system. ...more

New Developments on the VAT Exemption for Fund Management Services

On 17 June 2021, the Court of Justice of the European Union (CJEU) rendered two decisions about the application of the VAT exemption for management services provided in article 135 (1) (g) of the EU VAT Directive and...more

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