Luxembourg - Favourable Tax Regime for Intellectual Property Rights: Clarification by a New Circular
- J. Schaffner; K. Manhaeve; F. Trouiller
- European Taxation, 2009 (Volume 49), No 7
- 6 July 2009
On 5 March 2009, the Luxembourg direct tax administration published a circular (the Circular) providing guidelines in relation to the intellectual property regime (IP Regime), which was introduced on 1 January 2008. Under the IP Regime, a partial tax exemption of 80% applies to net income and capital gains deriving from certain intellectual property rights acquired or created after 31 December 2007. This note considers the clarification provided by the Circular.