We were mandated by a new client to formalize the request for a fiscal unity of its Luxembourg entities held by a Luxembourg top holding company.
The holding and certain of its Luxembourg subsidiaries were financed by interest bearing debts.
For the first financial year of application of the fiscal unity, we made the analysis regarding the interest limitation rules (Article 168bis LIR). The conclusion was that it would be profitable to benefit from group consolidated ratio approach (“Clause de sauvegarde”) instead of the standard approach of 30% EBITDA or euro 3mios maximum interest deduction.
Then, we were mandated to make the request to the Luxembourg tax authorities in order to benefit from that clause de sauvegarde.
