On 22 March 2018, the bill on the new IP regime was adopted by the Luxembourg Government. The Bill must now be signed into law and published in the Official Gazette to enter into force. Once in force, it is effective from 1 January 2018.
The regime provides for an 80% corporate income tax exemption on qualifying net income derived from the commercialization of qualifying IP assets/rights, and a 100% net wealth tax exemption. The new regime is fully consistent with all recommendations made by the OECD’s Forum on Harmful Tax Practices, including those set out in the OECD/G20 BEPS Project Action 5 Final Report published in October 2015.
