Functional currency (FC)
Pursuant to the FC circular issued in June 2014, (see our newsletter 2014-11) the taxpayer is required to submit a written request to the Tax Authorities for the application of the FC regime. This request needs to be filed at least 3 months before the end of the first financial year of the company under the FC regime (i.e. 30 September 2015 for companies closing as at 31 December 2015). Companies incorporated during 2015 and having a calendar year end need to file their written request until the 31 December 2015 at the latest. Otherwise the request is due at the respective year end during 2015.
The deadline for filing the written request for the application of the fiscal unity for tax year 2015 is 31 December 2015.
Net wealth tax
The end of the calendar year is approaching and, with it, the 2016 net wealth tax computation date. The unitary value (being the net wealth tax basis) of Luxembourg fully taxable companies is computed each year on 1 January, based on the latest financial year end situation (31 December for companies having a calendar year).
There is some time left to identify the non-exempt assets (like cash, deposits, non-qualifying shareholdings, properties in non-treaty countries, etc) financed by equity and to take appropriate actions to mitigate the 2016 net wealth tax exposures in the Luxembourg companies of your group.
Our teams are at your disposal to assist you on the various topics.
For further information, please do not hesitate to contact us.
Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.