On 10 November 2023, the Luxembourg Constitutional Court made a landmark ruling declaring the minimum net wealth tax, applicable to Luxembourg companies, as partly unconstitutional.
Following to the court’s decision, Luxembourg companies (mainly SOPARFIs)- originally subject to a fixed minimum net wealth tax of 4,815€ – now find themselves eligible for a reduced tax burden of 1.605€ provided that their total balance sheet is comprised between 350,000€ and 2,000,000€ (regardless their aggregated fixed financial assets, transferable securities, inter-company receivables, and cash represent more than 90% of their total gross assets or not).
Any taxpayers in this position need to assess their NWT situation and take appropriate measures for a potential refund of the excess of NWT previously paid since 2017.
Should you need any assistance or information in this regard, please reach out to corporate tax team led by Mathieu Ledoux
Read the full version of the decision here