Taxation of SICAR in LuxembourgUpdated on Sunday 19th March 2017
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Investment funds in Luxembourg are taxed in accordance with the category in which they are included. Foreign investors who want to set up a SICAR in Luxembourg are advised to study the regulations related to the taxation of this investment vehicle, as well as on the tax requirements that have to be met throughout a financial year. Our team of financial experts can provide more details on how to register for the taxation of the undertaking for collective venture capital investment (SICAR) in Luxembourg.
Tax regulations for SICARs in Luxembourg
A SICAR structure in Luxembourg is considered to be a resident company, which is liable to a set of local taxes. SICARs are liable to paying the municipal business tax, as well as the corporate tax.
Depending on the legal structure of the company, a SICAR will be liable for different taxation schemes.
SICARs registered as limited partnerships in Luxembourg
Thus, SICARs which are established as limited partnerships are required to pay taxes on the profit shares of the members. In this particular case, the SICAR will be exempted from paying the corporate tax, as well as the municipal business tax.
Those interested in private wealth management in Luxembourg must know that the net wealth tax is not applicable in the case of a SICAR registered as a limited partnership.
A SICAR in Luxembourg will not be required to pay the annual subscription tax, and also, the applicable legislation stipulates that management fees are exempted from paying the valued added tax and our team of financial representatives can provide more details in this sense.
SICARs established as investment companies in Luxembourg
However, in the case of SICARs registered as companies, the investors will be liable to corporate tax and municipal business tax.
The SICAR will not be liable to the above mentioned taxes in the case of income deriving from securities. Those who want to open an investment fund in Luxembourg as a SICAR company can also be exempted from paying the net wealth tax.
Businessmen can contact our team of financial agents for assistance on the taxation of a SICAR structure in Luxembourg.