Luxembourg in international tax / Marc Schmitz and Philip J. Warner.

Format:

Book

Author/Creator:

Warner, Philip J., author.

Schmitz, Marc (Tax consultant), author.

Language:

English

Subjects (All):

Business enterprises, Foreign--Taxation--Law and legislation--Luxembourg.

Business enterprises, Foreign.

Noncitizens--Taxation--Law and legislation--Luxembourg.

Noncitizens.

Taxation--Law and legislation--Luxembourg.

Taxation.

Tax planning--Luxembourg.

Tax planning.

Physical Description:

1 online resource (571 pages) : illustrations

Edition:

Third revised edition.

Place of Publication:

Amsterdam, The Netherlands : IBFD, 2015.

Summary:

The book provides an excellent comprehensive analysis of the different forms of corporate taxation in Luxembourg.

Contents:

Intro

Title Page

Copyright Page

Table of Contents

Acknowledgements

Foreword

Chapter 1 - An Introduction to Luxembourg and Essential Legal and Accounting Knowledge

1.1. An introduction to Luxembourg

1.1.1. General information

1.1.1.1. Geography

1.1.1.2. People and languages

1.1.1.3. History

1.1.1.4. Political and legal factors

1.1.2. Financial and economic information

1.1.2.1. Currency and the movement of funds

1.1.2.2. Major industries

1.1.2.3. Luxembourg as a financial centre

1.1.2.4. The Luxembourg Stock Exchange

1.2. Essential company law knowledge

1.2.1. The different forms of company

1.2.2. Incorporation of an SA or an Sàrl

1.2.3. Share capital at the time of incorporation

1.2.4. Issued shares

1.2.4.1. Registered or bearer shares

1.2.4.2. Voting rights attached to the shares

1.2.4.3. Authorized share capital

1.2.4.4. Transfers of shares

1.2.4.5. Share buy-backs (purchase of own shares)

1.2.4.6. Share capital reduction

1.2.5. The duties and responsibilities of directors and managers

1.2.6. Shareholders' meetings

1.2.6.1. Number of shareholders

1.2.6.2. Shareholders' meetings

1.2.6.3. Notification

1.2.6.4. Quorum

1.2.7. Audit requirements

1.2.8. Interim dividends

1.2.9. Transfer of the registered office

1.2.9.1. Transfer of registered office to Luxembourg

1.2.9.2. Transfer of registered office out of Luxembourg

1.2.10. Winding up and liquidation

1.2.10.1. Standard liquidation

1.2.10.2. Simplified liquidation

1.2.11. Mergers and demergers

1.2.11.1. Merger by absorption

1.2.11.1.1. The merger plan

1.2.11.1.2. Written management report

2.11.1.3. The auditor's report

2.11.1.4. The merger and its effective date

1.2.11.2. Merger by incorporation

1.2.11.3. Demerger

1.3. Essential accounting knowledge.

1.3.1. Fundamental accounting law and disclosure

1.3.2. Asset revaluation

1.3.3. Equity accounting

1.3.4. Depreciation

1.3.5. Intangibles

1.3.6. Other areas of interest

1.3.7. Other accounting valuation matters

1.3.8. Consolidated accounts

1.4. Luxembourg direct tax law and procedures

1.4.1. A brief history of Luxembourg direct tax law

1.4.2. Luxembourg tax law and international tax law or agreements

1.4.3. Abuse of law legislation

1.4.4. Business purpose and economic substance

1.4.5. Corporate tax assessment and dispute procedures

Chapter 2 - Resident Businesses and Branches of Non-Resident Businesses

2.1. The presence considered to generate taxable commercial income

2.1.1. Fundamentals

2.1.2. Income held to be "commercial profits"

2.1.3. The definition of a PE

2.2. Profits-based taxes

2.2.1. Background

2.2.2. The calculation of commercial income

2.2.3. Calculation of the net assets invested in a business

2.2.4. Assets to be included in the balance sheet

2.2.4.1. Assets (liabilities) deemed to be part of the business by their nature

2.2.4.2. Assets (liabilities) being part of the business by option

2.2.4.3. Assets (liabilities) excluded from the business by their nature

2.2.4.4. Economic ownership

2.2.4.5. The treatment of finance leases

2.2.4.5.1 The basic principle

2.2.4.5.2. "Financial" leasing

2.2.4.5.3. Other situations

2.2.4.6. Leasing of real estate

2.2.5. Accounting considerations

2.2.5.1. The relationship between the commercial balance sheet and the tax computation

2.2.5.2. Altering an already filed balance sheet for tax purposes

2.2.5.3. The concept of "adequate and orderly accounting records" and how far accounts can be adjusted to reduce tax liabilities

2.2.5.3.1. What is meant by "adequate and orderly accounting records".

2.2.5.3.2. The taxation effect of not having "adequate and orderly accounting records"

2.2.6. The valuation rules

2.2.6.1. The classification of assets

2.2.6.2. The fundamental principles of valuation

2.2.6.2.1. Valuation based on the circumstances at the period end

2.2.6.2.2. Exchange of securities

2.2.6.3. The fundamental valuation rule

2.2.6.4. Applying the valuation rules

2.2.6.4.1. Valuing debtors

2.2.6.4.2. Valuing stock

2.2.6.4.3. Valuing substantial shareholdings

2.2.6.4.4. The introduction of the EUR and the valuation rules

2.2.6.5. The valuation of assets which should be depreciated

2.2.6.5.1. Determining the expected useful life

2.2.6.5.2. Splitting the price paid for land and buildings

2.2.6.5.3. The capitalization (or not) of small-value assets

2.2.6.5.4. The point in time from which an asset may be depreciated

2.2.6.5.5. Unexpected loss of value

2.2.6.5.6. Extra depreciation to encourage certain activities

2.2.6.5.7. Reducing-balance depreciation

2.2.7. The deductibility of provisions

2.2.7.1. Provisions for future repairs and similar costs

2.2.7.2. Warranty and guarantee provisions

2.2.7.3. Internal provisions for pensions

2.2.8. Tax balance sheets and functional currency for tax purposes

2.2.9. The deductibility of expenses and exempt income

2.2.9.1. The general rule of deductibility of expenses

2.2.9.2. Examples of items which are tax deductible in Luxembourg

2.2.9.3. Non-deductible items in Luxembourg

2.2.9.4. Expenses that are specifically non-deductible

2.2.9.5. Expenses that are specifically tax deductible

2.2.9.6. Tax deductions for the provision of pensions

2.2.9.7. Items that are exempt or non-deductible following a tax treaty

2.2.9.8. Other exempt income

2.2.10. Debt waivers and carry-forward of losses.

2.2.10.1. The basic rules

2.2.10.2. Loss carry-forward and the effect of debt waiver

2.2.11. Capital gains and rollover relief

2.2.11.1. The fundamentals

2.2.11.2. Using the rollover provisions

2.2.12. Tax credits and incentives

2.2.12.1. Tax credit for investment

2.2.12.2. Tax credit for hiring the unemployed

2.2.12.3. Tax credit for continuing professional training

2.2.12.4. Assistance for new enterprises and new manufacturing projects

2.3. Corporate income tax

2.3.1. Entities subject to corporate income tax

2.3.1.1. Residents

2.3.1.2. Non-residents

2.3.1.3. Entities exempt from corporate income tax

2.3.2. The calculation of profits subject to corporate income tax

2.3.2.1. The application of the rules that apply to individuals

2.3.2.2. The effect of profit distributions

2.3.2.3. Hidden profit distributions

2.3.2.4. Hidden or disguised introductions of capital

2.3.2.5. Transactions involving the use of an asset at an undervaluation

2.3.2.6. Thin capitalization

2.3.2.7. Deductible and non-deductible expenses and tax-free income of companies

2.3.2.8. Classification of instruments as debt or equity

2.3.2.9. Consolidated tax returns

2.3.3. Calculating the tax due

2.3.3.1. The relationship between the accounting period and the rate of taxation

2.3.3.2. Final adjustments in calculating taxable profits for corporate income tax

2.3.3.3. The rate of corporate income tax

2.3.3.4. Minimum corporate income tax

2.3.3.5. The effect of tax treaties on the rate of corporate income tax

2.4. Municipal business tax and its interaction with corporate income tax

2.4.1. Background

2.4.2. Entities not subject to municipal business tax

2.4.3. The calculation of the profits subject to tax

2.4.4. The calculation of the tax due.

2.4.5. The effective rate of tax on profits

2.4.6. Example of the calculation of the profits taxes

2.5. Chamber of Commerce contribution

2.6. Net worth tax

2.6.1. Background

2.6.2. Entities liable to net worth tax

2.6.3. The tax rate

2.6.4. The tax base - The unitary value

2.6.4.1. The general valuation rule

2.6.4.2. Setting the unitary value

2.6.4.3. The importance of unitary value assessments

2.6.4.4. The unitary value of real estate

2.6.4.5. The unitary value of businesses

2.6.4.5.1. Real estate valuation

2.6.4.5.2. The use of the market value of fixed assets other than real estate

2.6.4.5.3. The exemption of certain large shareholdings

2.6.4.5.4. The non-deductibility of certain debts and liabilities

2.6.4.5.5. The market value of securities

2.6.4.5.6. Valuation adjustments for businesses with non-calendar year-ends

2.6.4.5.7. Branches

2.6.4.6. Items exempt under a tax treaty

2.6.5. Basic planning points concerning the unitary value

2.6.5.1. Distribution of profits that will not cause a tax liability in the hands of the recipient shareholder

2.6.5.2. Payment of interim dividends

2.6.5.3. Liquidation before 1 January

2.6.5.4. Repatriation of branch profits during the year

2.6.5.5. Investment in exempt or favourably valued assets

2.6.6. Minimum net worth tax and payment of tax

2.6.7. Net worth tax reduction

2.6.8. A basic example of the calculation of the net worth tax

2.7. Registration duties

2.7.1. Background

2.7.1.1. Definition of registration

2.7.1.2. Acts requiring registration

2.7.2. Different types of registration duty

2.7.2.1. The fixed registration duty

2.7.2.2. Proportional registration duties

2.7.3. Penalties

2.7.3.1. Valuation insufficiency

2.7.3.2. Sham ("misrepresentation").

2.7.4. Registration duties and company documents.

Notes:

Description based on print version record.

ISBN:

90-8722-335-8