Luxembourg

Luxembourg

Currency:  Euro

Foreign Exchange Control:  No restrictions on import or export of capital.

Accounting Principles: Lux GAAP (European Directives).  Financial statements prepared annually.

Business Entities:   Principally, corporation (S.A), limited liability company (s.a.r.l) other forms are also possible.

Corporate Taxation:

Residence: If registered office.

Basis:  Net profit before tax with numerous exemptions.

Rate:  Income Tax:

–  Corporate Income Tax (CIT):  15% to 18%
–  Multiple Business Tax (MBT):  3% to 9%

Other Tax

–  Net Wealth Tax (NWT):  0.5% of net equity:  minimum to EUR 4875,00.

Foreign Tax: Specific to countries according to double tax treaties.

Other:  Numerous exemption for financial income/financial investments.

Tax Year:  Accounting year

Personal Taxation

Residence:  Tax residency if more than 180 days and if 90% of the household revenue are Luxembourg based.

Rate: Progressive up to 42%

Capital Gains on Shares:  Exempted if held for more than 6 months.

VAT:  Rates are 3%, 8%, 17%

Member Firm:  Audit & Controls

Email:
Benoit Savary:  benoit.savary@auditandcontrols.lu