Home / Europe / Luxembourg / Tax

Tax

As local and international tax regulations become more prescriptive, dealing with them in a cross-border context presents you with a significant challenge. The number and complexity of tax investigations conducted by authorities is rapidly escalating and the need for tax adjustments is rising accordingly. Luxembourg being a key jurisdiction in cross-border tax structuring, we understand the tax pressures you face. That is the reason why we endeavour to provide you with innovative and tailor-made solutions.

Whether you are a financial institution, multinational, fund, investor or high net worth individual, CMS Luxembourg Tax team can help you manage tax control cases and deal with tax authorities as well as manage tax litigation cases. The right tax advice can make a material difference to transaction costs and, in some cases, avert serious consequences.

CMS Luxembourg’s Tax lawyers are able to provide advice on a vast range of transactions to both domestic and international clients. As an example we regularly assist our funds department on the tax aspects of the structuring of regulated and unregulated real estate, private equity or debt assets funds. In addition, we are able to cover most of the countries in which you are doing business thanks to our close collaboration with highly qualified CMS experts.

Indeed CMS alliance is composed of more than 350 tax lawyers who are supported by strong technical tax intelligence teams that identify developments in tax law and policy affecting your business. This multi-disciplinary approach helps you develop robust structures that maximise tax effectiveness in alignment with your commercial strategy.

Our teams work together across Europe and beyond in the key areas affecting your business including VAT, international taxation, transfer pricing, e-commerce, M&A and investment funds, tax planning and financing.

"Bilingual team; pleasant to work with; very friendly in their communication; keeping deadlines most of the times, pragmatic approach."

Legal500, 2022

"The whole team managed to provide efficient advice in line with our needs."

Legal500, 2022

"Good knowledge regarding transfer pricing."

Legal500, 2022

"Very strong on international/cross-border tax issues."

Legal500, 2022

Feed

17/01/2024
Directors' fees are no longer subject to VAT in Luxembourg
On 21 December 2023, the Court of Justice of the European Union (“ CJEU ” or “ Court ”) issued a decision on the case C-288/22. The Court puts an end to a long debate by ruling that the members...
27/12/2023
No white smoke on ATAD III proposal in 2023
As a reminder, on 22 December 2021, the European Commission issued its proposal for a directive to prevent the abuse of shell entities for tax purposes (ATAD III proposal). After several amendments, the...
01/12/2023
CMS Luxembourg Advent Calendar 2023
We are thrilled to unveil our #CMSLux­Ad­vent­Cal­en­dar23, featuring 24 essential legal insights for 2023 that will shape the legal landscape in 2024. Immerse yourself in the discovery of crucial new regulations right up to Christmas, and get ready to be informed about the major legal developments that will shape our year ahead. Stay tuned for our daily advent reveals starting!
01/12/2023
Un­con­sti­tu­tion­al­ity of the minimum net wealth tax of EUR 4,815
Un­con­sti­tu­tion­al­ity of the minimum net wealth tax of EUR 4,815On November 10, 2023, the Luxembourg Constitutional Court ruled that the minimum net wealth tax (NWT) of EUR 4,815 as provided for by paragraph...
24/11/2023
Carbon Border Adjustment Mechanism transition in effect since 1 October...
On 1 October 2023, a two-year transitional period began for implementation of Regulation (EU) 2023/956, which introduces the Carbon Border Adjustment Mechanism (CBAM). CBAM levies punitive CO2 charges...
07/11/2023
Luxembourg country tax guide
1. Languages used by the local tax authorities The Luxembourg direct tax administration, known as the Administration des contributions directes (“ACD”), uses French, German and Luxembourgish, which...
Comparable
27/09/2023
DAC 8 Proposal approved by the European Parliament
BackgroundIn recent years, the crypto-asset landscape has steadily grown and has reshaped the world of payments and investments. Today such assets have an estimated market capitalization of USD 1.09 trillion...
09/08/2023
Luxembourg ratifies amendments to UK-Luxembourg tax treaty - key con­sid­er­a­tions...
On 19 July 2023 Luxembourg ratified the text of the new tax treaty between the UK and Luxembourg (the Treaty). The UK ratified the Treaty last year. Changes that we addressed in our previous article will...
20/07/2023
Luxembourg court emphasizes need to justify and document economic reasons...
On 14 June 2023, the lower administrative court rendered a new decision (case n° 45759) once again dealing with the tax treatment applicable to the redemption by a Luxembourg company of so-called “alphabet...
20/06/2023
New circular and FAQ published by the Luxembourg tax authorities on reverse...
New circular and FAQ published by the Luxembourg tax authorities on reverse hybrid rules and re­port­ing­Back­groun­dOn 9 June 2023, the Luxembourg tax authorities (the “LTA”) published the long-awaited...
20/04/2023
FATCA & CRS | Obligations for Reporting Financial Institutions for year...
FATCA and CRS are two important tax compliance regulations that (Foreign) Financial Institutions in Luxembourg must comply with. Certain (Foreign) Financial Institutions must submit (Zero) reporting to the ACD by 30th June 2023, for the fiscal year 2022.
13/02/2023
Lower administrative court’s decision on redemption of a class of alphabet...
On 27 January 2023, the lower administrative court rendered a decision (42432) dealing among others with the tax treatment applicable to the redemption of a class of alphabet shares. Under Luxembourg...