Opportunities Arising from Entitlement to Participation Exemption Benefits for the Gain Realized upon Disposal of Preferential Subscription Rights

Luxembourg administrative courts recently rendered three decisions which confirm the application of the participation exemption regime to a gain deriving from the sale of assets which are not per se shares, and clarify the tax treatment of preferential subscription rights. Bearing in mind the significant role of Luxembourg in the financial sector, the authors explain the content of the recent court decisions and consider related opportunities.