27 April 2018 Luxembourg Parliament adopts new IP regime The Luxembourg Parliament recently adopted the draft law n°7163 on the new intellectual property (IP) regime (the Law). The text of the Law corresponds to the wording of the draft law as introduced before the Parliament, with one amendment on the definition of eligible expenses. The new wording clarifies that expenditures incurred by a permanent establishment (PE) located in a State party to the Agreement on the European Economic Area (EEA Agreement) qualify as eligible expenses, subject to all the other conditions being met, only insofar as the said expenditures are allocated to the taxpayer (i.e., to the head-office) pursuant to the double taxation treaty concluded with the country of location of the PE and are directly connected to the constitution, the development, or the improvement of a qualifying IP asset. Document ID: 2018-0906 |
