New IP regime in Luxembourg – The Challenges and ideas- 1

In Uncategorized by Michael Probst

In this Blog article called “The Challenges – Part I”, I will publish my views on the transition between the old and the new IP tax regime, and the IP which will no longer qualify under the new regime as well as some planning opportunities with regard to such IP. Indeed, the so-called “grandfathered” IP will continue to benefit from …

New IP regime in Luxembourg

In Uncategorized by Michael Probst

Finally, Luxembourg has managed to issue new tax rules on IP held through Luxembourg companies. A draft bill waited for desperately. Even though the tax benefit is 80% of net income (a known percentage), there have been some amendments, to ensure the new regime is in line with the OECD’s Nexus Approach. Indeed, the new regime will be more restrictive …

Transfer pricing – the head-cracker of Luxembourg tax advisers in the future?

In Uncategorized by Michael Probst

Unfortunately, I believe that the reply to the question I asked myself is: “Yes”. While the focus in Luxembourg currently is the transfer pricing circular for intra-group financing in its new version dated 27 December 2016, I think that the large wording of Article 56bis of Luxembourg Income Tax Law – which is by no way restricted to group financing, …

Why advice and compliance are so dependent on each other

In Uncategorized by Michael Probst

I am sure there exist unbelievable creative advisers, which have the best ever ideas on tax planning, despite of BEPS and all current measures to reduce international abuses, and which have themselves never prepared (or reviewed) the tax return of the first year in which their client acted as advised. Can you (as a professional or a client) imagine such …

Luxembourg Property Companies investing in Germany – Challenges from an accounting and tax point-of-view (part 2 – SAF-T/FAIA)

In Uncategorized by Michael Probst

With accounting performed by three parties in two countries (see part 1 of this blog), there is one legal and tax issue that needs to be considered: the Standard Audit File for Tax (SAF-T – or French: FAIA) and the connected issues. Indeed, even though a problem has so far been avoided in the market (or at least there is …

Luxembourg Property Companies investing in Germany – Challenges from an accounting and tax point-of-view (part 1)

In Uncategorized by Michael Probst

Based on our group’s large experience with Luxembourg corporations (LuxCo’s) investing (directly) in Real Estate located in Germany, we consider that there are accounting issues that require reflection and action. Promoters (for regulated funds or coordinators of private deals) tend to consider GAAP accounting and tax filings as unpleasant obligations and focus on the budget and specific control reportings. Indeed, …

The Brexit and tax issues

In Uncategorized by Michael Probst

The Brexit has been decided on by the British population (at least a majority of those who went to the ballots). There has been a lot of consequences on economics and politics which have been discussed in the media and which will require a lot of political decisions and negotiation in the coming years. Here is my opinion on the …

Home-Office – a great thing to do (unless you are a Luxembourg employer)

In Uncategorized by Michael Probst

At the end of May 2016, one of the bigger German newspapers considered home-office to make employees happier and more productive. (http://www.welt.de/gesundheit/psychologie/article155325775/Zu-Hause-arbeiten-macht-gluecklich-und-produktiv.html) A Luxembourg employer allowing his employees to work from home, has to bear in mind that there is a relatively high chance that the one or the other of these employees will be working in one of the …

The “wind of change” in Luxembourg – 2. Challenges for Tax advisers

In Uncategorized by Michael Probst

The second blog on the “wind of change” relates to the challenge in the profession for tax advisers in Luxembourg. One of the big challenges of a Luxembourg tax adviser is the knowledge of national and international tax laws. The underlying demand is growing permanently. Also, the Luxembourg tax advice environment has changed over the last years.