Working group

Tax

The Tax WG brings together tax experts to discuss relevant tax issues with the aim of agreeing on common market positions and providing guidance to the market in the form of position papers issued by LuxCMA.

The Tax WG aims at working closely with policymakers on questions and developments that are relevant to the Luxembourg capital market.

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Tax is of crucial importance in capital markets. Through its two sub-groups – one dedicated to direct taxes (income taxes etc) and the other to indirect taxes (most importantly VAT) – the Tax WG brings together tax experts representing the major players in the Luxembourg capital market with the purpose of discussing tax questions as they arise and agreeing on common positions on tax topics of broader relevance to the market.

The outcome will be position papers and interpretations issued by the LuxCMA, such as the 2020 position paper on the application of interest limitation rules to securitization companies.

The Tax WG aims at working closely with policymakers on questions and developments that are relevant to the Luxembourg capital market, is an active contributor to public consultations and collaborates with other associations on topics of common interest.

Sponsor

Holger von Keutz

PwC

Sponsor

Frank Mausen

Allen & Overy

Chairperson

Anja Taferner

EY

Chairperson

Julie Carbiener

Simmons & Simmons

Publications

  • Tax
Tax I Newsflash I EU Commission referring Luxembourg to the CJEU for failing to correctly transpose ATAD

25 July 2023

Attention all Luxembourg tax professionals! We have entered the next chapter in the discussion on the exclusion of Securitisation Vehicles covered by the Anti-Tax Avoidance Directive (ATAD1). The LuxCMA has just released a statement addressing the recent news of the European Commission referring #Luxembourg to the Court of Justice of the European Union for failing to correctly transpose ATAD.

Tax I Statement l Feedback on the Proposal for a Directive on Debt-Equity Bias Reduction Allowance (DEBRA)

1 August 2022

On 11 May 2022, the European Commission published a Directive proposal to tackle the tax bias in favor of debt funding. The proposal includes both a notional deduction on growth in equity and an additional limitation on interest deduction for corporate income tax (CIT) purposes – the 𝗗𝗘𝗕𝗥𝗔 𝗽𝗿𝗼𝗽𝗼𝘀𝗮𝗹. The DEBRA proposal, once adopted by the Council, would have to be implemented into Member States’ national law by…

Tax I Public Consultation I LuxCMA feedback on the New EU system for the Avoidance of Double Taxation and Prevention of Tax Abuse in the field on Withholding Taxes

28 June 2022

Cross-border investment and simplified taxation are a priority for the EU. Despite the measures taken to remove tax barriers to cross-border investment, obstacles remain in the EU. This initiative aims to introduce a common EU-wide system for withholding tax on dividend or interest payments. It will include a system for tax authorities to exchange information and cooperate with each other.

ATAD l Update l LuxCMA’s view in relation to the EU Commission calling Luxembourg to amend its legislation transposing the Anti-Tax Avoidance Directive

9 December 2021

UPDATE OF THE 26/05/20 PAPER l According to the December infringement package published by the European Commission, the latter sent a reasoned opinion to Luxembourg asking it to correctly transpose the interest limitation rule of the Anti-Tax Avoidance Directive (Article 4 of the Council Directive (EU) 2016/1164). Under current Luxembourg law, securitisation companies covered by Regulation (EU) 2017/2042 of 12 December 2017 (EU Securitisation Regulation) are excluded from…

VAT l LuxCMA technical position paper

18 February 2021

Luxembourg remains one of the main securitisation centres in Europe. Its attractive and flexible legal and tax framework is adapted to the needs of investors and SVs, particularly with regard to VAT exemptions. Our #LuxCMA VAT Task Force takes stock of the situation and provides useful insights for CLOs and CDOs.

ATAD l LuxCMA technical position paper

26 October 2020

Our technical position paper, which was accessible to our LuxCMA members only, is now available to everyone! Congratulations again to our Direct Tax Working Group (previously #Securitisation & #ATAD Task Force) for the release on 26/10/2020 of the impressive technical position paper on #deductibility of payments by securitization companies financed by debt.

ATAD l LuxCMA’s view to the EU Commission formal notice sent to Luxembourg to amend its legislation transposing the Anti-Tax Avoidance Directive

26 May 2020

On 14 May 2020, the European Commission announced that it decided to send a letter of formal notice to Luxembourg asking it to correctly transpose the interest limitation rule of the Anti-Tax Avoidance Directive (Article 4 of the Council Directive (EU) 2016/1164). Under current Luxembourg law, securitization companies covered by Regulation (EU) 2017/2042 of 12 December 2017 (EU Securitization Regulation) are excluded from the scope of the interest…

Interview

3 questions to… Anja Taferner

1️⃣ It’s almost 3 years since the LuxCMA paper on interest limitation rule was issued. How do you evaluate the paper now?
2️⃣ The securitization law was amended since the LuxCMA paper came out – how do you view transparent securitization structures from a tax perspective?
3️⃣Do you think the SV market needs to be concerned because of ATAD 3?

Anja is sharing some of her thoughts with us!