Corporate Tax in Luxembourg - Foundation and Mechanism

This course will enable you to study the tax environment applicable to different types of companies in Luxembourg. Understand the origins of tax liability, the different stages and tax documents throughout the tax year. Analyse the different taxes, how they are determined and the advantages available to companies.

This course is part of the "Tax Manager - Fundamentals" certification programme. It can also be taken independently of the certification course.

At the end of this training, based on practical case studies, you will have analysed the following aspects:

• The different steps involved in taxing a commercial enterprise

• The difference between opaque and transparent entity

• Understanding the CIT / MBT/ WHT / NWT

• Tax returns and related tax computation  

• Tax consolidation

• Recent international developments

• Basic concepts

• • The applicable provisions 

  • Tax residency

  • Different types of entities

  • How is tax levied?

  • Overview of direct taxes applicable to compagnies 

• CIT/MBT - Taxation of commercial companies

• • General principles

  • Computation & taxable base

  • Exemptions for distributions

  • Other tax adjustments (non-taxable income, expenses, etc.)

• Hidden dividend distributions

• • The definition

  • Tax treatment

  • What is the difference with hidden capital contributions

• Fiscal Unity

• • Description of the regime

  • Tax consequences

• Net Wealth tax

• • Characteristics of net wealth tax

  • Determination & taxable base 

  • Minimum NWT

  • Reduction of wealth tax

• Withholding tax 

• Recent developments

• Accountants

• chartered accountants

• trustees

• bankers

• entrepreneurs

At the end of the course, participants will receive a certificate of attendance delivered by the House of Training.