Luxembourg Tax practice

Luxembourg Tax practice

1 Luxembourg Tax practice About us We are a preferred tax adviser to the world s leading corporations and financial institutions, known for our innovative approach to providing practical and commercially viable advice globally and in Luxembourg. With over 100 tax lawyers across our global network working closely together we have the expertise to handle domestic and cross-border transactions and reorganisations. In Luxembourg, our enterprising and knowledgeable tax team advises clients on tax aspects for Luxembourg investments and the structuring of international transactions via Luxembourg regulated and non-regulated vehicles. We also have significant expertise in cross-border investments for institutional investors, private equity and real estate funds, acting for clients throughout Europe, the United States and Asia. We have extensive experience in: international tax planning structured finance M&A and restructurings debt and equity capital markets compliance collective investment schemes VAT securitisations real estate taxation transfer pricing Islamic finance employee incentives and benefits estate planning tax optimised exit schemes tax litigation Allen & Overy LLP 2016

2 Key practice areas Tax structuring We act for banks, financial intermediaries and other institutions proposing innovative tax structures and products to procure cost-efficient financing, to mitigate excessive tax exposure, to streamline multi-jurisdictional transactions and reorganisations and to hedge foreign exchange and insolvency risks. We have significant expertise in cross-border tax-enhanced operations. Alternative investment funds We regularly advise on the structuring of regulated and unregulated funds (private equity, real estate, infrastructure, debt, hedge). We have extensive experience and know-how in advising private equity houses and venture capitalists with respect to leveraged buy-outs and other private equity transactions involving Luxembourg acquisition/ finance vehicles. We also have substantial experience of, and an excellent track record in, advising on tax efficient structuring and setting-up of investment platforms for real estate investments in all major jurisdictions across the globe. Due to our global reach and our international expertise, we have assisted several of the largest and most complicated fund structures, delivering to our clients innovative and practical solutions to a wide range of issues. Allen & Overy Luxembourg sits as the best in tax, advising clients such as Lone Star and Clearstream on a range of matters including VAT issues, tax planning and investment work. The extremely efficient Jean Schaffner and Patrick Mischo jointly head the practice. Capital markets and securitisations We are known in the market for being innovative and able to create benchmarks in the tax and legal world and, more importantly, to provide clients with commercially viable structures in an increasingly regulated environment. We have been involved in the setting-up of the first ever-regulated Luxembourg securitisation undertaking. We have advised on the first Luxembourg-based Islamic financing platform allowing the issue of Sharia compliant securities and also advised the Luxembourg Government in connection with Luxembourg s first sukuk offering. Corporate Our corporate client base includes major international businesses active in a wide range of sectors such as insurance, energy, manufacturing, retail, internet, e-commerce, technology, construction, shipping and aviation. We advise on all types of transactions, including corporate restructurings, joint-ventures and domestic and cross-border mergers and acquisitions. Our team, in strong collaboration with our corporate experts, advises on the set-up, structuring and financing of these operations in a tax efficient way. Wealth management We have substantial experience in assisting HNWI, UHNIW and family businesses willing to preserve and develop their wealth, and to pass it onto the next generations. Our experts deliver tailor-made advice based on our local knowledge and on the world-class resources provided by the Allen & Overy network. Legal 500 2015

3 Luxembourg Tax practice Full service offering In addition to the services we offer in the framework of our key practice areas, we also offer a full range of specialised services outlined below Transfer pricing We offer transfer pricing services and can assist you with the design and the implementation of your transfer pricing policy, the determination of an arm s length remuneration through benchmarking analyses on various types of intra-group transactions, the documentation of your transfer prices, the filing of advance pricing agreements with the Luxembourg tax administration in order to reduce tax exposure and any request or challenge concerning your transfer prices by Luxembourg or foreign tax authorities. Litigation We have significant experience in any kind of tax litigation, including both direct and indirect taxes. We can assist you during the pre-litigation stage including discussions and exchanges with the Luxembourg tax administration as well as during the litigation stage. As fully qualified lawyers, we can offer advice and representation before all Luxembourg courts, as well as the EUCJ. Our global network is ideally placed to handle the growing number of cross-border tax litigation cases. Our main priority is to resolve disputes quickly and effectively with as little disruption to your business as possible recognition of this is central to how we approach any matter. VAT We have extensive experience of advising on any kind of VAT issues, with a particular emphasis on financial services, investment funds and real estate. Thanks to our global network, we are particularly efficient in cross-border VAT work. As such, we can offer services in relation to any type of VAT matter, including advice, compliance and VAT litigation. Compliance We can take care of the management of your relationship with the tax authorities, from the preparation of tax returns through the review of tax assessments to the negotiations of advance tax agreements or assistance with litigation proceedings. We propose attractive packages for the preparation of your tax returns, including corporate income tax, municipal business tax, wealth tax and VAT returns. Outstanding full-service tax practice, with notable activity in complex private equity cases. Offers in-depth knowledge of transactional tax matters and regulatory issues. Draws support from its substantial network of offices to assist clients with international requirements. Chambers Europe 2014 Law Firm of the Year for Benelux FT Mergermarket Awards 2007, 2008, 2009, 2010, 2012, 2013 & 2014 Allen & Overy LLP 2016

4 Luxembourg offers A highly attractive tax environment Cooperative and responsive Cutting edge Lowest standard VAT rate A highly attractive tax regime and fiscal framework: for companies: a participation exemption regime on dividends and capital gains, tax efficient divestment and exit techniques, an extensive tax treaty network, access to EU Parent-Subsidiary and Interest and Royalties Directives. Cooperative, pragmatic and responsive tax authorities. Cutting-edge legislative and operational framework for mutual and pension funds, alternative investment funds, structured finance and securitisation vehicles, providing for efficient regulation and tax-neutral structuring. Lowest standard VAT rate in the EU. for high-net-worth individuals: limited taxation on interest, dividends and nonspeculative capital gains on real estate, exemption on non-speculative capital gains, no gift taxes (in most cases), no or low inheritance tax, no taxation of insurance premiums.

5 Luxembourg Tax practice About Allen & Overy in Luxembourg Why Allen & Overy? For 25 years, clients have been at the heart of everything we do. Our clients are central to our strategy, culture and the way in which we deliver our advice. While each client is unique, our standards of excellence are universal. More than legal advisers, we aim to become strategic business partners for our clients. We support them at all stages of their development, and offer them a full range of legal services. We advise many of Luxembourg s leading businesses and public bodies, and the world s leading corporations, financial institutions, insurance companies and asset managers. Our clients face complex opportunities and threats that cross borders. They require high quality and tailored legal advice, quickly. We deliver that through our leading Luxembourg practice, seamlessly integrated into a global network of local experts and dedicated industry practice groups. We invest heavily in client relationships, for example by opening Luxembourg desks in major financial centres where our clients operate, offering training (in Luxembourg and beyond) which is dedicated to our clients needs, and being flexible and competitive when it comes to fee arrangements. Culture and values Our culture defines us and the values we share inspire the way we work and behave: excellence in everyone and everything dedication to our clients helping our people to achieve their potential respecting and including every individual working together as one firm entrepreneurial spirit and energy Allen & Overy in Luxembourg in numbers 8 Employment 15 Capital Markets 4 Litigation 21 Corporate M&A 2 Real Estate 13 Tax 4 Intellectual Property & Information Technology 15 Banking & Finance 15 Investment Management 11 partners 82 lawyers 146 staff Allen & Overy LLP 2016

6 What we offer Insights We have a solid working relationship with the Luxembourg authorities and are actively involved in several industry and working groups with significance for the financial sector such as the Luxembourg Bankers Association (ABBL), the Association of the Luxembourg Fund Industry (ALFI), the Luxembourg Private Equity & Venture Capital Association (LPEA) and Invest Europe. We are also actively involved in discussions relevant to key tax issues such the OECD BEPS initiative, among others. We have therefore developed a nuanced understanding of the attitudes of public authorities, monitoring and becoming aware of developments at a very early stage. This often gives us the ability to offer insights that help in your risked-based analysis and tax planning beyond a purely technical basis. Seminars, conferences and client newsletters During recent years we continued to be pro-active in sharing knowledge with our clients. We showcased our technical ability and thought leadership through numerous in-house seminars and conferences, ealerts, roundtables and client bulletins. Online services Leveraging technology is core to our offering. We provide a market-leading range of online services, including bespoke Client Portal Pages, enabling us to share documents, know-how, publications, online tools and relationship information, and assist with the analysis of legal issues in different jurisdictions. The elibrary, our archive of over 6,000 client publications, features an alert functionality which allows our clients to set up and receive email alerts on topics of interest, for relevant jurisdictions, at a frequency of their choice. In a number of cases we have worked with our clients to further develop their portal so that it not only gives them tools such as secure document storage, access to webcasts and an online discussion forum, but also evolves around their content and encourages self-sufficiency among their in-house lawyers. Training We regularly offer training on a variety of legal and tax topics. Working closely with clients on the content, format and delivery method, we can design and deliver training on tax hot topics specifically affecting their business, or more general back to basics content, on-site or remotely. We feel this is beneficial in demonstrating our investment in building relationships. Regular client briefings Regular seminars In-house seminars Brainstorming sessions ellibrary

7 Luxembourg Tax practice Key contacts Jean Schaffner Partner Patrick Mischo Partner Florent Trouiller Counsel Julie Chartrain-Hecklen Senior Associate Tel +352 44 44 55 410 jean.schaffner@allenovery.com Tel +352 44 44 55 429 patrick.mischo@allenovery.com Tel +352 44 44 55 430 florent.trouiller@allenovery.com Tel +352 44 44 55 604 julie.chartrain@allenovery.com Jean heads the Luxembourg tax practice and he advises various international investment banks on tax structured finance schemes (including securitisations) and has extensive experience in advising institutional investors and private equity funds in cross-border investments all over Europe. He has significant expertise in advising clients on tax aspects for Luxembourg investments and in relation to the structuring of international acquisitions via Luxembourg regulated and non-regulated vehicles. Jean has written several books on Luxembourg and international taxation. He is a member of the scientific board of the Luxembourg chapter of the International Fiscal Association (IFA), a member of the International Bar Association (IBA) and has served as a member of the Luxembourg Bar Council. Patrick specialises in international and corporate tax law. He advises clients on the tax aspects of private equity transactions and international real estate investments, as well as the structuring of regulated and unregulated investment funds. He also has extensive experience in securitisations, structured finance and capital markets. He has more than ten years of experience working in these areas. Patrick regularly speaks and publishes articles on tax topics. He is a member of the international tax and tax reporting working group of Invest Europe, a member of the executive committee and the co-chairman of the tax committee of the Luxembourg Private Equity & Venture Capital Association (LPEA) and a member of the strategic tax issues committee within the Association of the Luxembourg Fund Industry (ALFI). He is also a founding member and former President of Young IFA (International Fiscal Association) Luxembourg. Florent specialises in international and corporate tax law. He has significant experience in advising on cross-border private equity and real estate investments. Florent also advises on tax aspects of capital market and securitisation transactions. Florent is a member of the International Fiscal Association (IFA) and of the double tax treaties technical committee of the Association of the Luxembourg Fund Industry (ALFI). He has written several articles on Luxembourg and international tax issues. The efficient and business-friendly Patrick Mischo is very easy to work with and always looking for solutions, according to interviewees. He brings focused expertise to the tax aspects of private equity transactions, international real estate investments and the structuring of investment funds. Chambers Europe 2014 (Tax) Julie advises on personal income tax law and estate planning. She specialises in wealth management and has significant experience in advising HNWI and family offices on Luxembourg structuring opportunities. She also has substantial experience in advising clients in relation to the tax aspects of the structuring of international acquisitions via Luxembourg regulated and non-regulated vehicles. Julie is a member of the International Fiscal Association (IFA). She has written several articles on Luxembourg tax topics and has been speaker at various seminars with a focus on international tax law and wealth management. Allen & Overy LLP 2016

8 Julie Carbiener Senior Associate Jacques Wantz Senior Associate Sophie Balliet Associate Paul Berna Senior Associate/PSL Tax Tel +352 44 44 55 118 julie.carbiener@allenovery.com Tel +352 44 44 55 101 jacques.wantz@allenovery.com Tel +352 44 44 55 221 sophie.balliet@allenovery.com Tel +352 44 44 55 228 paul.berna@allenovery.com Julie specialises in VAT, tax litigation and international tax law. She has significant experience in advising on tax aspects with a special focus in VAT of private equity transactions, international real estate investments, as well as the structuring of regulated and unregulated investment funds. She also has extensive experience in tax litigation. Julie is a member of the International Fiscal Association (IFA), the VAT technical committee of the Association of the Luxembourg Fund Industry (ALFI) and the VAT group of the Luxembourg Bankers Association (ABBL). She has written several articles on Luxembourg tax topics and has been speaker at various seminars. Jean Schaffner and Patrick Mischo are at the cutting edge of Luxembourg s ever-evolving tax system. Legal 500 EMEA 2014 Jacques advises on international and corporate tax law. He has substantial experience in advising institutional and HNWI clients on the tax aspects of cross-border investments and on the setting up of Luxembourg investment platforms. He also has solid knowledge of the tax aspects of corporate restructurings, private equity investments, the structuring of international acquisitions via regulated and unregulated funds, as well as securitisation transactions. Jacques regularly speaks and publishes articles on various tax topics. As head of Allen & Overy s Luxembourg-Russia desk since September 2012, Jacques has a particular focus on Russian and CEE clients and has spent almost two years working at the Allen & Overy Moscow office. Sophie advises on transfer pricing and international tax law. She has significant experience in documenting intra-group financing activities, preparing and negotiating several Advance Pricing Agreements (APAs) in compliance with the Luxembourg domestic regulations and OECD Transfer Pricing Guidelines, as well as structuring and designing transfer pricing policies for various actors in the Luxembourg financial sector. She also has substantial experience in transfer pricing aspects involving multinational groups across various sectors. Prior to joining A&O, Sophie gained five years of experience working with a Big Four firm in auditing and consulting globally. in the area of transfer pricing in France and Luxembourg. Sophie is member of the International Fiscal Association (IFA). She has written several articles on transfer pricing in Luxembourg. Paul specialises in international and Luxembourg corporate tax law, in particular in relation to international acquisitions via Luxembourg regulated and non-regulated vehicles. He has substantial experience in private equity transactions and international real estate investments, as well as the structuring of regulated and unregulated investment funds. He also advises clients on securitisations, structured finance and capital markets, including Islamic finance. He further advises clients on the implications of FATCA and the OECD Common Reporting Standard. Paul has written several articles on Luxembourg tax topics and has been a speaker at various seminars. Paul is a member of the International Fiscal Association (IFA) as well as a board member of Young IFA Luxembourg. He is a member of the FATCA and BEPS working groups of the Luxembourg Private Equity & Venture Capital Association (LPEA) and of the CCCTB working group of the Luxembourg Bankers Association (ABBL).

9 Luxembourg Tax practice Providing high quality tax advice across the world NORTH AMERICA New York Washington, D.C. CENTRAL & SOUTH AMERICA São Paulo AFRICA Casablanca Johannesburg ASIA PACIFIC Bangkok Beijing Hanoi Ho Chi Minh City Hong Kong Jakarta* Perth Seoul Shanghai Singapore Sydney Tokyo Yangon EUROPE Amsterdam Antwerp Barcelona Belfast Bratislava Brussels Bucharest* Budapest Düsseldorf Frankfurt Hamburg Istanbul London Luxembourg Madrid Milan Moscow Munich Paris Prague Rome Warsaw MIDDLE EAST Abu Dhabi Doha Dubai Riyadh** * Associated office ** Cooperation office Allen & Overy LLP 2016

10 A&O offices with tax capacity A&O offices Relationship firms

FOR MORE INFORMATION, PLEASE CONTACT: Luxembourg Allen & Overy 33 avenue J.F. Kennedy L-1855 Luxembourg PO Box 5017 L-1050 Luxembourg Tel +352 44 44 55 1 Fax +352 44 44 55 222 GLOBAL PRESENCE Allen & Overy is an international legal practice with approximately 5,000 people, including some 527 partners, working in 44 offices worldwide. Allen & Overy LLP or an affiliated undertaking has an office in each of: Abu Dhabi Amsterdam Bucharest (associated office) Budapest Ho Chi Minh City Hong Kong Moscow Munich Seoul Shanghai Antwerp Casablanca Istanbul New York Singapore Bangkok Barcelona Doha Dubai Jakarta (associated office) Johannesburg Paris Perth Sydney Tokyo Beijing Düsseldorf London Prague Warsaw Belfast Bratislava Frankfurt Hamburg Luxembourg Madrid Riyadh (cooperation office) Rome Washington, D.C. Yangon Brussels Hanoi Milan São Paulo Allen & Overy means Allen & Overy LLP and/or its affiliated undertakings. The term partner is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Allen & Overy LLP s affiliated undertakings. Allen & Overy LLP 2016 CS1212_CDD-5008_ADD-57192