- On 19 April 2018, the law introducing the new Luxembourg BEPS-compliant Intellectual Property (IP) regime was published. With retroactive effect as from tax year 2018, Luxembourg taxpayers now benefit from an 80% exemption regime applicable to income related to patents and copyrighted software.
- The only IP assets that can qualify for tax benefits under an IP regime are patents and other IP assets that are,considered as functionally equivalent to patents if those IP assets are both legally protected and subject to similar approval and registration processes, where such processes are relevant.
- Marketing assets such as trademarks and domain names are expressly excluded from the scope of qualifying assets.
- As was the case for the previous IP regime, the new regime applies to all Luxembourg taxpayers. This means that the regime is available to both individuals and corporate taxpayers.
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