Investment funds

• The obligation to declare and pay the subscription tax applies throughout the entire existence of the entity, from the date of incorporation until the completion of liquidation procedures. The date of incorporation and the date of dissolution of the entity, as published on the Luxembourg Business Register (LBR), are determinative.

• If a newly established entity has no activity and holds no assets, a tax return with a taxable base of zero euros must be filed. If the entity has received subscriptions, which constitute assets, the total net assets (NAV) valued on the last day of each quarter must be declared.

The subscription tax must be declared and paid within the first twenty days following the end of each quarter:

• For the first quarter, the deadline is April 20^th  N;
• For the second quarter, the deadline is July 20^th  N;
• For the third quarter, the deadline is October 20^th  N;
• For the fourth quarter, the deadline is January 20^th  N+1.

The subscription tax must be declared and paid within the first twenty days following the end of each quarter

• For the first quarter, the deadline is April 20^th  N;
• For the second quarter, the deadline is July 20^th  N;
• For the third quarter, the deadline is October 20^th  N;
• For the fourth quarter, the deadline is January 20^th  N+1.

A submitted declaration may be rectified at any time within two years from the filing date.

The taxable person can submit a new, corrected declaration trough the platform MyGuichet. The corrected declaration will automatically replace the previous declaration. If the corrected subscription tax amount is higher than the amount already paid, the difference must be paid immediately. If the amount of the corrected subscription tax is lower than the amount already paid, the overpayment can be deducted from the next payment. 

The exchange rate on the last day of each quarter, as published by the European Central Bank, should be used.

 RAIFs are not subject to the subscription tax regime in the case described below:

• The constitutive document provides that the exclusive object of the company is to invest its funds in assets representing capital risk and

• The constitutive document provides that the requirements of article 48 of the law of 23 July 2016 on reserved alternative investment funds apply to it

RAIFs that meet the conditions set out in the article 48 above are not subject to the subscription tax but instead fall under the authority of the Luxembourg Inland Revenue (Administration des contributions directes).

The obligations to declare and pay subscription tax exist for the entire duration of the existence of the entity subject to subscription tax, from the date of incorporation to the date of dissolution. The date of incorporation and the date of dissolution of the entity, as published on the Luxembourg Business Register (LBR), are determinative. 

The tax base for the subscription tax is constituted by the total net assets assessed on the last day of each quarter. If the entity was dissolved during the quarter and had assets during that period, the subscription tax must be determined proportionally based on the number of days, applying a pro rata calculation over a 90 day period. If the entity existed for the entire quarter and has no net assets at the end of the quarter, the taxable base to be declared will be zero.

Article 2 of the Grand Ducal decree of February 20, 1914 provides that :

"The transmission and subscription taxes established by Articles 34 and 37 of the Law of December 23, 1913 shall be paid in accordance with Article 35  of the same law, by companies , corporations, and enterprises at the registration office of the head office, respectively of the seat of their principal establishment in the country, after the expiration of each quarter, and within the first twenty days of the following quarter, under penalty of a fine equal to one tenth of the taxes due.

"The transmission and subscription taxes established by Articles 34 and 37 of the Law of December 23, 1913 shall be paid in accordance with Article 35  of the same law, by companies , corporations, and enterprises at the registration office of the head office, respectively of the seat of their principal establishment in the country, after the expiration of each quarter, and within the first twenty days of the following quarter, under penalty of a fine equal to one tenth of the taxes due.