What is subscription tax in Luxembourg?
What is subscription tax in Luxembourg?
Overview of the new law and guidance
| Percentage of net assets invested into qualifying assets | Subscription tax rate applicable to the portion of qualifying assets |
|---|---|
| At least 5% | 0.04% |
| At least 20% | 0.03% |
| At least 35% | 0.02% |
| At least 50% | 0.01% |
What is subscription tax?
The subscription tax is levied at a rate of 0.05% on the net assets held by the fund. A reduced rate of 0.01% is also available if the fund invests in specific assets. One of the main tax benefits of the AIF in Luxembourg is the exemption from the income, wealth and withholding capital gains taxes.
What is a Luxembourg SIF?
A specialised investment fund (“SIF”) is an investment vehicle designed for sophisticated investors that is regulated by the Luxembourg Commission de Surveillance du Secteur Financier “CSSF”). SIFs benefit from having a relatively prompt set-up process, low costs and minimal taxation in Luxembourg.
Do you have to pay taxes on a SIF in Luxembourg?
Foreign and local businessmen who want to open an investment fund in Luxembourg that operates as a SIF are qualified for a set of tax exemptions. The income taxes are not applicable for this structure, nor is the wealth tax.
Do you have to pay subscription tax in Luxembourg?
This rate can be reduced to 0.01 % under certain conditions. Specialised Investment Funds (SIF) are subject to an annual subscription tax at the rate of 0.01 % on their net assets. Reserved Alternative Investment Funds (RAIF) are subject to an annual subscription tax at the rate of 0.01 % on their net assets.
What kind of tax do I pay on a SIF?
Specialised Investment Funds (SIF) are subject to an annual subscription tax at the rate of 0.01 % on their net assets. Reserved Alternative Investment Funds (RAIF) are subject to an annual subscription tax at the rate of 0.01 % on their net assets.
How is a SICAV fund taxed in Luxembourg?
A SICAV fund in Luxembourg is taxed following a specific taxation scheme, which offers a set of tax exemptions and deductions, on which our team of financial experts can provide an in-depth presentation. Luxembourg represents a top investment destination for businessmen who want to open a SICAV in this country.