tax avoidance

Luxembourg’s government is proposing to simplify the corporate income tax process for investment funds which have overseas investors or subsidiaries by reducing their risk of being subjected to full Luxembourg anti-tax avoidance corporation tax. The changes to the “reverse hybrid rule” seek to remove doubt from how to deal with tax exempt entities.

That a global minimum corporate tax rate is being perused by the Biden administration is a revolution. Yet it raises questions about whether this desire can be translated into effective policy. Moreover, it is unclear what would be the impact on the attractiveness of places like Luxembourg as a hub for multinationals.