Why do some companies appear to benefit from lower tax by being headquartered in Luxembourg?
Situations of double-non taxation, i.e. companies paying little or no tax, can only arise as a result of the interaction of various local tax systems. Luxembourg fully agrees that the problem of double non-taxation must be resolved, but this issue cannot be solved by Luxembourg alone.
It requires a coordinated effort by the international community. This topic is being discussed at OECD level with the BEPS (base erosion and profit shifting) initiative. Luxembourg is an active and supportive player in these discussions.Return to fact list