From Luxembourg: New IP Regime Adopted
Michael Probst and Matthias Gutknecht - BA Tax Accountants in Luxembourg, a collaborating firm of Andersen Global
In March 2018, the Luxembourg Parliament voted for the new IP Regime and is effective as of January 1, 2018.
The new regime promotes R&D activities in Luxembourg and complies with the recommendation of the OECD (nexus approach).
The beneficial regime grants:
- a tax exemption of 80% for net income and capital gains
- a full exemption from the net wealth tax
The grandfathering period for the application of the former IP regime ends on June 30, 2021. New structures need to be set in place.
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