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By Franz KERGER, Counsel Samara HISCOCK, Senior Associate, Allen Overy Luxembourg
The beginning of the year was marked by the judges’ confirmation that a share class redemption is treated as a disposal for Luxembourg tax purposes to the extent that such redemption occurs at fair market value, irrespective of it being subsequently followed by a share capital reduction or not.(1)
In Luxembourg, repurchases of entire share classes can under certain circumstances occur free of Luxembourg withholding tax. From a technical perspective, a class of shares can be considered as a participation within the meaning of article 101(2) of the Luxembourg income tax law, dated 4 December 1967, as amended (the LITL). Such article further provides...
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