Earlier this month, the Luxembourg tax authorities published circular L.G. – A. n° 61 of 8 December 2017 (the Circular) which addresses the issuance of certificates of residence for undertakings for collective investments (UCIs). It replaces circular L.G. – A. n° 61 of 12 February 2015.
The main change is the addition of reserved alternative investment funds (RAIFs) which must follow a specific procedure to obtain certificates or residence. The procedure varies depending on whether the request is made in the presence of an applicable double tax treaty (DTT) or based on domestic law. In the first case, the requestor (be it the RAIF itself of its custodian bank) must provide the tax number, the date of constitution, and the RAIF’s address (additional information may be requested by the tax inspector in charge of the file). In the second case, further information will be required when submitting the request: why the certificate is requested from a foreign legal point of view and which are the revenues for which a tax reclaim is being submitted (again, additional information may be requested by the tax inspector in charge of the file).
RAIFs which opted for the regime provided for by article 48 of the law of 23 July 2016 (SICAR regime) are excluded from the scope of the Circular as they can obtain certificates of residence under the same conditions as Luxembourg companies.
The methodology to request a certificate of residence of UCIs, other than RAIFs, generally remains the same, with the only change being that UCIs now have to indicate their tax identification number.
In addition to the above changes, the scope of DTTs covered by the Circular has been amended to include modifications to existing DTTs and new DTTs concluded by Luxembourg (amendments concern Andorra, Brunei, Croatia, Estonia, Serbia, Seychelles, Singapore, Ukraine & Uruguay).