In the tax ecosystem, substance holds significant importance: if you operate an investment platform in Luxembourg, it is essential that the various Luxembourg vehicles are vested here with sufficient substance to mitigate potential challenges from foreign tax authorities.

It can be difficult to benchmark your business against other market players (given the absence of available market data) and test your substance level generally or even specifically looking at selected target jurisdictions.

Clients are aware of existing challenges in certain jurisdictions and are now increasingly willing to assess the robustness of their set-up. Furthermore, they always seek ways to improve their operating model and ensure that they have an appropriate tax governance in Luxembourg.

The tax landscape is evolving fast, and clients are interested in discussing recent experiences from the market and sources of challenge from foreign tax audits.

And here is where we come in.

Our dedicated team of experts will test your substance and business model, and identify any gaps compared to your peers.

Based on our experience and expert knowledge of the market as well as the results from our yearly substance survey, we identify any discrepancy between best market practices and your substance in Luxembourg.

We provide tailored-made recommendations to increase the robustness of your operating model while providing key updates on upcoming challenges in given jurisdictions.

What we can do for you

  • Assess your substance compared to peers See where you stand in terms of substance compared to other market players.
  • Report any gaps between your set-up and the market standards Do’s and don’ts, recommendations on how to adjust the way you operate in Luxembourg.
  • Upgrade your set-up Identify areas in which you can increase your level of comfort to be prepared when challenges arise.
  • Implement new processes to strengthen your set-up We accompany you to implement our various recommendations based on any gaps identified.

Proactively check your substance and tax governance in order to be prepared for potential challenges.

Benjamin Toussaint, Partner, KPMG Luxembourg

Detailed features

Phase 1 – Workshop with your team and gap screening

  • Interviews with your team (or questionnaire-based approach) to identify any gaps.
  • Comparison of results with other market players, and assessment of your level of comfort.
  • Inclusion in the workshop, if needed, of specific considerations related to key investment jurisdictions.
  • High-level recommendations, based on this initial screening, for upgrading your set-up.

Phase 2 – Implementation of new processes

  • Assistance in adapting the recommendations to your specific needs.
  • Collaborative implementation of new processes
  • Analysis finalization by debriefing your board of managers about these upgrades.

Get in touch

Benjamin Toussaint

Benjamin Toussaint

Tax Partner
KPMG Luxembourg

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Julien Ghys

Julien Ghys

Tax Director
KPMG Luxembourg

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