Do funds pay tax?
Funds directly pay over 750 million euros in tax
Every Luxembourg-registered fund pays a significant amount of tax which amounts to a total 761 million euros via an annual levy on total net assets (2014).
The Luxembourg Fund Industry indirectly pays an additional 500 million euros in tax.
In addition to direct taxes via the subscription tax, the fund industry ‘pays’ additional taxes indirectly via the corporate tax on management companies and service providers, individual income tax on salaries, including multiplier effects. In a 2012 study by Deloitte, these taxes represented an additional 78% compared to the subscription tax, which could represent 500 million euros in today’s terms.
Funds do not benefit from “Tax Rulings”
European retail funds are the most important type of investment scheme in Luxembourg, accounting for 83% of all assets. These retail funds have no tax rulings. This is why The Economist indicated “the industry is largely insulated from adverse developments on the tax front” (11 October 2014 issue).Return to fact list