We have witnessed the nationalisation of commercial banks, cases of bankruptcy, and an unprecedented degree of industry consolidation on the Luxembourg financial market. At present, the Luxembourg banking industry is still facing an exceptionally challenging time — from volatile markets and increased funding costs to strategic cost cutting and heightened regulatory scrutiny. In such an environment, protecting and growing shareholder value requires that financial institutions be disciplined, customer focused and opportunistic.
Aberdeen Tax Reclaims
In 2009, the ECJ decision in the Aberdeen Case was a milestone judgment for the abolishment of the discriminatory taxation of cross-border dividends.  Great opportunities for investment funds to reclaim millions of unduly paid withholding taxes.

Bank Taxation
KPMG's tax specialists have a long tradition of assisting banks in managing the complexity of the tax code. In order to meet a bank's corresponding obligations, monitoring and understanding tax rules is crucial.

Base Erosion and Profit Shifting (BEPS) is a worldwide intense project of modernization of the international tax system that may affect most multinational enterprises.

Exchange of information
Tax transparency and automatic exchange of information initiatives at both European Union (EU) and international level will require significant attention in the months to come.

Enacted in March 2010, the goal of FATCA is to obtain information relating to U.S. persons that have offshore accounts or investments in order to combat offshore tax evasion by such persons.

Qualified Intermediary
A Qualified Intermediary (QI) is a foreign financial institution such as a bank, broker or asset manager, which pays US source income to its customers and has signed a QI Agreement with the IRS.

Savings Directive
The European Union Savings Directive (EUSD) foresees a 35% withholding tax or exchange of information regarding cross-border interest payments.

Participants in the global investment management industry are facing unprecedented complication of managing their tax affairs both locally and across multiple jurisdictions.

Get in touch with KPMG


Sébastien Labbe


Tel. +352 22 51 51 - 5565


Gérard Laures


Tel. + 352 22 51 51 - 5549


Laurent Engel


Tel. + 352 22 51 51 - 5535


Frank Stoltz


Tel. + 352 22 51 51 - 5520


Jean-Paul Olinger


Tel. +352 22 51 51 - 5573


Heike Weber


Tel. +352 22 51 51 - 5418