Curent TMT market
The technologies and communication sectors have increasingly influenced our lives since the past decades. Characterised by a rapid growth since almost 25 years, this market is nowadays facing new challenges. Therefore, the way TMT companies are able to handle those challenges is more and more critical, especially in an interconnected world where changes happen fast.
Luxembourg, an essential place for TMT investments
For several reasons, Luxembourg should be considered by TMT companies looking for a competitive place to run their business and realize TMT investments.
In 2006, the Luxembourg Government started LuxConnect to promote TMT investments by creating a wide dark fibre infrastructure. The country even contemplates to become the first "fibred" country in the EU.
Further, Luxembourg benefits from a stable electric network with a good market price. Also the geographical situation of the country makes it a strategic operating place for TMT companies that can therefore enjoy its fibre network connected to the major hubs in Europe.
Over the last couple of years, the Luxembourg VAT, which is one of the lowest in Europe, has played an important role in the decision of some international electronic service providers to run their business in Luxembourg.
Finally, Luxembourg has over the past years implemented a specific IP tax regime which allows, under certain conditions to be met, a 80% exemption of the net positive income derived from patents, software copyrights, designs, models, domain names and trademarks.
Due to all those governmental and private supporting initiatives, Luxembourg has become a visible country in the TMT landscape. Thereupon, in 2010 Luxembourg ranked seventh of 159 countries in the TMT Development Index (IDI) taking into account TMT access, internet band width, mobile broadband, cellular penetration, lowest TMT tariffs, according to the International Telecommunication Union (ITU).
Which companies are likely to be interested in Luxembourg for TMT investment?
Due to the recent global expansion of the Technology, Media and Telecommunications market, KPMG decided to create a dedicated TMT team composed of experts in the fields of audit, tax and advisory to assist TMT companies, wathever their size or particular sector, to deliver tailor made, industry specialized business solutions.
Together with you, we aim at enhancing your performance on the market.