Cover IMF Working Papers
Buy Book in Print
International Taxation and Luxembourg’s Economy
Author:
Ruud A. de Mooij
Search for other papers by Ruud A. de Mooij in
Current site
Google Scholar Close
,
Dinar Prihardini null

Search for other papers by Dinar Prihardini in
Current site
Google Scholar Close
, and
Mr. Emil Stavrev
Search for other papers by Mr. Emil Stavrev in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 264
Language:
English
Publication Date:
25 Nov 2020
DOI:
https://doi.org/10.5089/9781513560922.001
ISBN:
9781513560922
ISSN:
1018-5941
Pages:
36
Keywords:
Luxembourg; International Tax; Foreign Direct Investment; Special Purpose Entities.; WP; Luxembourg economy; Luxembourg government; tax system; CbCR datum; climate change commitment; energy efficiency target; Luxembourg driver; Luxembourg headquartered MNEs; Luxembourg MNEs; Special Purpose Entities; property tax; Corporate income tax; Special purpose vehicle; Income; Environmental taxes; Global; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.9 MB) Download Epub
Luxembourg receives ample investment from multinational corporations, in part due to some attractive features in its international tax rules. Around 95 percent of these foreign investments pass through Luxembourg via companies performing holding and/or intra-group financing activities. While their contribution to Luxembourg’s economy is modest relative to their large overall balance sheets, they still generate around 3 percent of GDP in tax revenue, create almost 4500 direct jobs, and spend almost 3 percent of GDP on salaries and purchases of business services. Ongoing changes in the international corporate tax framework pose risks to these economic contributions, which this paper attempts to quantify. It also discusses options for reforms in Luxembourg’s tax system that could help offset adverse revenue and economic effects.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund