Classification of Foreign Entities for Luxembourg Tax Purposes: Methodology and Tax Consequences

Journal
Hoor, O.R.
Luxembourg
European Taxation 2012 (Volume 52), No. 4
FormatPDF
EUR
40
| USD
45
(VAT excl.)

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.