Luxembourg

Luxembourg

A Luxembourg holding company (Soparfi) is legally exempt from all local taxes including corporation tax,capital gains tax and withholding tax if the parent compnay holds at least 10% shares in an EU resident subsidiary for a continuous period of 12 months.Also,these tax advantages will also be extended to other countries with which Luxembourg has signed a DTA if these countries have corporate tax rate of at leaast 21%.

Luxembourg corporations are best known for their holding functions rather than being corporations actively engaging in business and commerce. A typical Luxembourg “Holding Company” is a legal corporation in regards to its tax status which is attractive to foreign investors. The Luxembourg SARL is similar to a limited liability company in other regions. The SARL has the legal liability protection of the corporation and the non-transferability of the company shares of a partnership. It can have between two and 100 partners. There is also the one person SARL, called the SARL unipersonnelle.

Registering a Luxembourg company to hold patents ,trademarks and registered designs has tax advantages,as royalty income on these rights only suffers corporation tax of 6% and enjoys zzero withholding tax on distribution payments.As Luxembourg is a member of both the EU and the World Intellectual Property Organisation (WIPO),a Luxembourg company is the perfect vehicle through which to hold intellectual property rights that can be enforced internationally.