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.