Luxembourg - Classification of Foreign Entities for Luxembourg Tax Purposes: Methodology and Tax Consequences
- O.R. Hoor
- European Taxation, 2012 (Volume 52), No 4
- 5 March 2012
The Luxembourg tax consequences of Luxembourg resident individuals or companies investing in a foreign entity (outbound investment) or foreign entities realizing income from Luxembourg sources (inbound investment) largely depend on whether the entity is classified as a company or a partnership. This article analyses the methodology applied when classifying foreign entities for Luxembourg tax purposes and the related tax consequences.