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By Guilhèm BECVORT, Partner Pierrick ROMANCANT, Associate, White Case
The European Directive (EU) 2022/2523 introducing a global minimum effective taxation of 15% for large groups, commonly referred to as “Pillar Two”, has applied in Luxembourg since 1 January 2024. Two years into its application, one point has become increasingly clear in the investment funds space: Pillar Two is not only a technical tax issue. It is also, and in many cases primarily, a question of fund documentation.
In practice, the key question is often not simply whether the GloBE rules may apply as a matter of principle, but where the resulting economic burden may arise within the structure, how it may affect returns and, ultimately, who should bear it. That...
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