ATOZ, in partnership with Legitech, will be hosting a series of four workshops in which participants will gain a clear understanding of the impact of the OECD BEPS project on alternative investments in Luxembourg, hosted by our Tax Partners, Oliver R. Hoor and Romain Tiffon and Tax Principal, Fanny Bueb.
Description
Over the last decades, Luxembourg has developed and cemented its position as a location of choice for asset managers implementing Alternative Investments such as private equity, real estate, infrastructure or hedge funds.
Although these investment activities where never in the focus of the OECD when developing new tax rules as a result of the organisation’s Base Erosion and Profit Shifting (“BEPS”) Project, the changes that are implemented in the domestic tax law of Luxembourg and foreign jurisdictions as well as the changes to bilateral tax treaties and the OECD Transfer Pricing Guidelines have an impact on the taxation of Alternative Investments.
PAST EVENTS
- Module 1: Structuring of alternative investments
21 April 2022
The OECD BEPS Project resulted in a multitude of tax law changes across Europe and beyond. However, what is the impact on Alternative Investments in Luxembourg (Private Equity, Real Estate, Infrastructure, etc.)? Oliver analysed the impact of changes under domestic tax law and tax treaty law during this module.
Agenda:
- Introduction
- Typical investment structures
- The OECD BEPS Project and ATAD/ATAD 2
- Impact of ATAD/ATAD 2 on Investments
- The interest limitation rules
- Hybrid mismatch rules
- Reverse hybrid mismatch rule
- The General Anti-abuse Rule (GAAR)
- Impact of the Multilateral Instrument (MLI)
- Principal Purposes Test (PPT)
- Summary
- Module 2: Substance requirements
28 April 2022
Substance is a key element in international taxation and relevant for the application of domestic tax law, tax treaties and the arm's length principle. While substance was always important for Luxembourg companies that are frequently involved in cross-border business and investment activities, the focus on substance and transparency only increased during and after the OECD BEPS Project. Oliver will analyse the importance of substance, including an analysis of the ATAD 3 Directive proposal, during this module.
Agenda:
- Introduction
- The notion of substance
- The importance of substance in international tax
- Defining the right level of substance
- Excursus: ATAD 3, the Unshell Directive
- Case studies
- Summary
- Module 3: Transfer pricing and related documentation requirements
5 May 2022
Luxembourg companies may enter into diverse commercial and financial transactions with associated enterprises. The prices charged in regard to these controlled transactions have to adhere to the “arm’s length principle”. Over the last years, transfer pricing has become the hot topic in Luxembourg taxation. Oliver and Fanny will analyse the importance of transfer pricing and related documentation requirements during this module.
Agenda:
- Introduction
- Snapshot of the Luxembourg TP landscape
- The arm's length principle
- Transfer pricing adjustments
- Controlled transactions in the context of Alternative Investments
- Luxembourg finance companies
- TP documentation
- Summary
- Module 4: The mandatory disclosure regime (DAC6)
12 May 2022
Under the mandatory disclosure regime (“MDR”), tax intermediaries such as tax advisers, accountants and lawyers that design, promote or provide assistance in regard to certain cross-border arrangements have to report these to the tax authorities. Since the implementation of the MDR, the analysis of potential reporting obligations has become an integral part of each and every tax analysis. Oliver and Romain will provide a practical introduction to the MDR during this module.
Agenda:
- Introduction
- Key features of the MDR
- Determining reportable arrangements
- The hallmarks of reportable arrangements
- The main benefit test (MBT)
- Managing DAC6 obligations in practice
- Case studies
- DAC6Connect - The IT Solution
- Summary