Newsletters & Newsflashes

On 18 March 2026, the Luxembourg Administrative Tribunal ( Tribunal administratif, No. 48905) ruled on the TP implications of an intra-group financing operated through a Luxembourg PE involving guarantees. Following a Belgian tax adjustment and a spontaneous exchange of information, the Luxembourg

Newsflash | Luxembourg case law | Share premium reimbursement without capital reduction subject to withholding tax Infographic | Luxembourg impatriate tax regime for highly skilled employees Infographic | Luxembourg's carried interest tax regime Thomson Reuters Practical Law | Arbitration procedures

In a judgment dated 25 March 2026, the Luxembourg Lower Administrative Court ( Tribunal administratif) ruled that distributions from a share premium reserve, undertaken in the absence of a formal share capital reduction, are prima facie subject to Luxembourg withholding tax (“ WHT”) and do not

The 2025 update to the OECD Model Tax Convention , published in November 2025, is the first comprehensive revision since 2017. The update notably provides clarification to the Commentary of Article 5 on when a home office of a cross-border worker may constitute a permanent establishment. Why this

On 11 February 2026, the Lower Administrative Tribunal ( Tribunal administratif ) ruled in favour of a taxpayer-lawyer, holding that his 100% shareholding in a UK company did not form part of the net assets ( actif net investi ) of his law firm, and that the dividends received therefore qualified as

Background The European Commission has launched the Tax Omnibus initiative (the “ Initiative” or “ Tax Omnibus”) to simplify and modernise corporate direct taxation across the EU. The aim is to reduce administrative burdens, clarify rules, and increase the competitiveness of the internal market. The

In Case C-158/25 (QJ v the Luxembourg Registration Duties, Estates and VAT Authority ( Administration de l'enregistrement, des domaines et de la TVA ) (" AEDT")), Advocate General Medina proposes in her Opinion of 5 March 2026 that the CJEU grants company directors subject to a guarantee call the

In a judgment dated 5 February 2026, the District Court of Luxembourg (No. TAL-2023-09471) has confirmed a EUR 725,000 administrative fine imposed by the Luxembourg Registration Duties, Estates and VAT Authority ( Administration de l’enregistrement, des domaines et de la TVA ) (“ AED”) on a company

Lower Administrative Court validates deferral of capital gains through intra-group reinvestment In a judgment of 13 February 2026, the Lower Administrative Court ( Tribunal administratif ) ruled (No. 48945 ) in favour of a Luxembourg company (the " Parent Company") and its subsidiary (the "

In a judgment dated 3 March 2026 (No. 53701C ), the Higher Administrative Court ( Cour administrative, the “ Court”) dismissed an appeal brought by the Luxembourg State and confirmed that the Direct Tax Authority ( Administration des contributions directes , " DTA") had failed to establish the

On 11 February 2026, the Luxembourg Lower Administrative Tribunal ( " Tribunal ") (No. 47018) ruled on the existence of an abuse of law within the meaning of §6 of the Luxembourg tax adaptation law ( Steueranpassungsgesetz - " StAnpG "). Facts A Luxembourg private limited liability company ("

On 12 February 2026, the Higher Administrative Court ( Cour administrative, the “ Court”) issued a decision in case No 53399C, clarifying the formal requirements for tax complaints under § 249 of the General Tax Law ( Abgabenordnung, the " AO"). Facts of the case On 1 July 2021, a Luxembourg limited