Latest Newsletters & Newsflashes
Dec 28, 2018ECJ confirms right to deduct input “VAT” following a failed takeover bid
On October 17 th 2018, the Court of Justice of the European Union (the “ ECJ”) handed down a ruling (C-249/17) confirming the right to deduct, in full, input VAT paid on expenditure incurred in the context of a takeover bid, provided that the exclusive reason for that expenditure was to be found in
Oct 08, 2018BSP Newsletter | October 2018
This newsletter is intended as a general discussion of the following topics: Capital Markets, Corporate, Employment, Fintech, Investment Funds and Tax. If you would like to know more about the topics covered in this newsletter or our services please contact us. CAPITAL MARKETS Amendment of the Law
Oct 05, 2018Distinction Between Rental and Commercial Income under Luxembourg Tax Law
In a recent decision (No.39731 dated July 10 th 2018), the Lower Administrative Court (“ Tribunal administratif”), once again confirmed the principle that each tax year should be assessed independently. In the case at hand, an SCI (“ Société Civile Immobilière”), a type of tax transparent entity
Oct 05, 2018ECJ Grand Chamber Judgment on Cross-Border Loss Relief for Permanent Establishements
On June 12 th 2018, the Grand Chamber of the European Court of Justice (“ ECJ”) handed down its judgment in Case C-650/16 A/S Bevola. The case concerned the compatibility of Danish rules on the deductibility of foreign permanent establishment (“ PE”) losses with the freedom of establishment provided
Oct 05, 2018Mandatory Disclosure of Cross-Border Tax Arrangements by EU Intermediaries - DAC 6
On June 5 th 2018, the latest amendment to the Directive on Administrative Cooperation including a new set of rules on Mandatory Disclosure of Cross-border Tax Arrangements by EU intermediaries (“ DAC6”) was published in the EU official journal, making the proposal of the Commission applicable (
Oct 05, 2018VAT Treatment of a Redemption of Shares in Kind
On June 13 th 2018, the European Court of Justice (the “ ECJ”) handed down a ruling (Case C-421/17) on the VAT treatment of the transfer, by a limited company, to one of its shareholders, of the ownership of immovable property, as consideration for the redemption of shares. The facts of the case
Oct 05, 2018Vat Letting of a Building Qualifies as Involvment in management of Subsidiary
On July 5 th 2018, the Court of Justice of the European Union (the “ ECJ”) handed down an important ruling, clarifying that the letting of a building, by a holding company to its subsidiary, amounts to ‘involvement in the management’ of that subsidiary, which must be considered to be an economic
Jul 12, 2018German Constitutional Court Decision on Unitary Values
On April 10 th 2018 the German Constitutional Court (hereafter “ GCC”) ruled that the assessment of property tax in the “old West German states” of Germany, based on unitary values determined in 1964, was unconstitutional as it leads to major difference in treatment without sufficient justification
Jul 12, 2018BSP Newsletter | July 2018
This newsletter is intended as a general discussion of the following topics: AML, Banking & Finance, Capital Markets, Dispute Resolution, Employment, Investment Funds and Tax. If you would like to know more about the topics covered in this newsletter or our services please contact us. AML European
Jun 25, 2018Circular on VAT Treatment of Virtual Currencies
On June 11 th 2018, the director of the Luxembourg indirect tax authorities ( Administration de l’enregistrement et des domaines, “ AED”) issued a circular, which confirms that the position held by the ECJ, in its court ruling Hedqvist of October 22 nd 2015 (C-264/14), should apply in Luxembourg and
Jun 25, 2018Draft Law on the VAT Group Regime
The Luxembourg Minister of Finance submitted to the Parliament on April 13 th 2018 a new draft law No. 7278, introducing the VAT group regime in Luxembourg (the “ Draft Law”). This follows the repeal on November 23 rd 2017 of the Grand-Ducal Decree dated January 21 st 2004 regarding the VAT
Jun 22, 2018Draft Law for the ATAD 1 Implementation
On June 18 th 2018, the Luxembourg government published a draft law implementing the first Anti-Tax Avoidance Directive (hereafter “ ATAD”) into Luxembourg law (please see our Newsletter of April 2016 on the topic of the ATAD). The draft law still needs to go through the Luxembourg legislative