Luxembourg Tax News

Treaty between Luxembourg and Denmark covers Luxembourg SICAVS and SICAFS and Danish collective investment vehicles

16 March 2006

Luxembourg and United Arab Emirates signed a first-time income tax treaty on 21 November 2005. Further details of the treaty will be reported subsequently.

6 December 2005

The first-time income and capital tax treaty, signed on 13 December 2004, between Luxembourg and Israel was presented to the Luxembourg parliament for approval on 7 October 2005. Once the treaty has entered into force, it will generally apply retroactively from 1 January 2004. The treaty was concluded in the French, Hebrew and English language, each text having equal authenticity, and generally follows the OECDE Model Convention.

9 November 2005

Netherlands dividend withholding tax on distributions to Luxembourg minority shareholder incompatible with EU law

9 November 2005

Spanish withholding tax creditable against Luxembourg municipal business tax Luxembourg-Spain treaty

16 October 2005

Reduction of municipal business tax rate in Luxembourg city It is reported that on 12 July 2005, Luxembourg City announced that the multiplier used for the calculation of the municipal business tax rate will be reduced from 250 to 225 points as from 1 January 2006. Consequently, the total corporate income tax rate for companies established in Luxembourg City will be reduced from 30.38% to 29.63%.

16 October 2005

Bill implementing amendments to EC Parent-Subsidiary Directive submitted to Parliament

21 September 2005

On 12 July 2005 India announced that negotiations are underway for a first-time tax treaty between India and Luxembourg.

3 August 2005

Luxembourg and the United Arab Emirates initialled a first-time income and capital tax treaty on 5 May 2005.

9 June 2005

The first-time income and capital tax treaty between Luxembourg and Turkey , signed on 9 June 2003, entered into force on 18 January 2005. The treaty will be effective as from 1 January 2006 .

17 March 2005