Luxembourg has ratified a tax agreement with the United Kingdom

Luxembourg has officially endorsed a tax agreement with the United Kingdom. With the United Kingdom having already ratified the SIDN (Special Investment Distribution Network) agreement, the terms will take effect on the following dates:

• Starting from January 1, 2024, the agreement will be applicable to tax at the source in the United Kingdom for Luxembourg.
• From April 1, 2024, the agreement will also be in effect for corporate tax in the United Kingdom.
• As of April 6, 2024, the agreement will be applicable to income tax in the United Kingdom.

The SIDN agreement encompasses a zero-tax policy on dividends, interest, and royalties. Nonetheless, certain exceptions apply to investment structures that derive income from real estate and are eligible for a tax exemption on profits related to such income. In such cases, the withholding tax will be limited to 15%.