Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013 - (Page 6)

LuxNews Tax News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE — N°81 — APR / MAY / JUNE 2013 Luxembourg’s 2013 tax measures 6 In December 2012, the Luxembourg Budget for the year 2013 was adopted, together with a separate Law introducing new tax measures which are effective from 1 January 2013. Business taxation Minimum taxation Effective from 1 January 2013, Luxembourg introduced a general minimum tax regime for all tax payers subject to Luxembourg corporate income tax, and amended the existing minimum tax regime for certain holding companies: l Increase of the minimum tax for SOPARFIs and extension of scope All corporate entities having their statutory seat or central administration in Luxembourg are in the scope of the minimum tax regime if certain conditions are met. Where the sum of fixed financial assets, transferable securities, cash, and receivables towards affiliated companies exceeds 90% of the balance sheet total, a €3,000 minimum tax will be due (€1,500 in fiscal year 2012), plus contribution to the employment fund. In addition to SOPARFIs, regulated entities (such as SICARs and Securitization vehicles) will now be in the scope of the new provisions on minimum tax for holding companies to the extent that the above threshold requirements are met. The provisions restricting the minimum tax regime to entities, whose activities does not require a business license or the approval of a supervisory authority, have been abolished. Companies which are part of a tax consolidation regime will suffer this minimum tax at the level of each entity, but the consolidated amount of minimum tax is capped at an amount of €20,000. It is not possible to reduce the minimum tax by applying certain available domestic tax credits (e.g., investment tax credit, tax credits for professional training, hiring of unemployed, or venture capital investments) and the provisions on net wealth tax reduction by creating a net wealth tax reserve. l New minimum tax regime for companies other than holding companies All Luxembourg resident entities in corporate form which are subject to Luxembourg corporate income tax and which do not meet the abovementioned conditions, are subject to a general minimum tax ranging from €500 to €20,000 (plus contribution to employment fund), depending on the balance sheet total as at financial year’s closing date. Assets which generate income (or are likely to generate income) for which the taxation right belongs to another country based on a double taxation treaty concluded with Luxembourg (e.g., immovable property, or assets allocated to a permanent establishment) should be excluded from the balance sheet total for the purpose of determining the said minimum tax. This allows that, among others, Luxembourg real estate vehicles holding directly foreign real estate property are not highly impacted. The aforementioned rules regarding tax consolidation (i.e., limit of €20,000) and non-deductible domestic tax credits and the provisions on net wealth tax reduction by creating a net wealth tax reserve are also applicable. Increase of the contribution to the employment fund The current contribution to the employment fund due from companies subject to corporate income tax will be increased from 5 to 7%, leading

Table des matières de la publication Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013

Couverture
EDITORIAL
SOMMAIRE
FINANCIAL HIGHLIGHTS
INTERVIEW - Patrick Siméon and Ibra Wane, Amundi
FOCUS
FORUM OF ADVERTISERS
CORPORATE FINANCE
15 MINUTES WITH - Jörg Wiemer -Treasury Intelligence Solutions - TIS
NEWS
The Financial Risk Observatory

Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013