Navigate the new world of tax
The alternative investments space continues to grow, despite facing increased pressure from regulators. Frequent changes in the domestic and international tax environment, coupled with a complex global marketplace, challenge players to adapt and evolve in order to stay competitive and compliant.
In today's tax landscape, knowledge and technology hold more power than ever before.
Whatever tax challenges you face, we’re here to help you meet them. We use our deep expertise, industry focus, advanced technology, and tools to help businesses like yours navigate the latest changes, stay compliant and empower their operations. By combining our technical knowledge with our business acumen, we can deliver impactful results today and identify key opportunities for tomorrow.
Benjamin Toussaint
Partner, Alternative Investments Market Leader
KPMG in Luxembourg
Connect with us
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Meet the team
By collaborating with our audit and advisory teams, leveraging the knowledge of our broader KPMG network, and utilizing our deep industry expertise, our tax experts deliver tailored solutions for each of your organization’s key focus areas. We are here to help you navigate the complexities of applicable tax regulations and changes.
- 90 +
professionals - 10
nationalities - 10 +
languages - 45 %
women
Our expertise
Real Estate and Infrastructure
Private Equity
Private Debt
Real Estate and Infrastructure
Luxembourg has been a pioneer in the structuring of real estate investments. It has emerged as the leading domicile in Europe for vehicles investing directly or indirectly in internationally diversified real estate portfolios. KPMG Luxembourg offers a robust expertise in real estate, specializing in tax advisory, valuation and transaction services.
Private Equity
While waiting for the market to stabilize, private equity leaders are focusing on building value within their portfolio companies. Many private equity firms in Luxembourg remain highly active, staying true to their original investment strategies and bolstering their positions through strategic acquisitions. Furthermore, these companies are placing a strong emphasis on seamless integration, cost control, and efficient management of working capital. Leaders in the private equity sector are aware that the much-anticipated recession may already be in the rearview mirror, and as market conditions stabilize, buyers will pursue high-quality assets, eager to deploy capital. Private equity is gearing up for game day, and we are here to support you!
Private Debt
Private debt remains an attractive investment opportunity. This is confirmed by our latest Private Debt Fund Survey, which shows that despite global economic challenges, investor appetite for private debt funds has continued to grow, becoming an essential part of investors' portfolios. The transformative impact of ESG and sustainability regulations, as well as the use of technology, is becoming pivotal and influencing the private debt market. Our team is ready to guide you through these latest market trends and unique insights observed in our practice and collected in our Private Debt Fund Survey 2024.
How we can help you?
Whether you are starting, building or expanding your structure – be it a fund, a management company, a holding platform or a special purpose vehicle – we can support you during any stage of the structure lifecycle: formation and capital accumulation, acquisition or divestment, reporting, restructuring, refinancing, and more. We’ve got you covered.
- Set up and capital raising: defining and implementing the most appropriate corporate and finance structure, as well as the future tax framework for all players involved
- Investments acquisition: identifying, evaluating and managing tax risks while ensuring the tax efficiency of the investment’s onboarding, as well as defining its future operation as your business grows
- Dealing with different compliance obligations: ensuring compliance with tax procedures and reporting from all the involved international parties
- Restructuring and ad-hoc matters: identifying any structural improvement opportunities in the context of the changing tax environment
- Divestment: optimizing the exit strategy and evaluating the related risks
Setup and capital raising
Investments acquisition
Monitoring and compliance
Restructuring
Divestment
Setup and capital raising
Looking for a cost-efficient setup to facilitate your investment strategy and maximize the return capacity? Want to ensure all deal breakers are clarified and covered? Want to know the best way to remunerate all parties involved in the structure? It is important to address these tax matters from the start.
We can help you identify a relevant structure and perform a preliminary, but thorough screening of a contemplated setup. By connecting with our domestic and international network, we offer tailor-made solutions for any business prospects.
We can address various areas and challenges you may be facing:
- Setting up a structure to comply with changing tax regulations
- Support implementation
- Tax compliant funding instruments
- Substance requirements and evolving practice
- Anti-tax avoidance regulations and their impact (such as, ATAD I, ATAD II and ATAD III)
- Investors’ tax obligations and exposure
- Planning and setting up a solid transfer pricing policy
- Planning and implementing incentive plans
- Advising and implementing relevant digital solutions to increase any processes’ efficiency
Investments acquisition
Evaluating the risks of a new acquisition? Want to ensure that the onboarding of a new investment aligns with the established strategy and structure?
Our extensive deal experience covers both local and international tax scenarios, and our team is equipped to provide a comprehensive range of M&A tax services to support you throughout the transaction process:
- Assessing tax risks associated with the investment (due diligence)
- Ensuring all risks are addressed among the parties
- Post-deal integration, including transfer pricing analysis
- Supporting implementation
- Ensuring compliance with tax reporting, including DAC6 requirements
- Addressing any indirect tax (VAT) matters
Monitoring and compliance
Taxpayers who do not meet their compliance obligations may face fines and penalties. Tax compliance involves two main aspects: cost and risk. Our mission is to assist fund managers and other market players in minimizing both. By transferring this responsibility to our team, we offer a wealth of resources and expertise that may not be available in-house, along with a platform for data collection and oversight of your tax compliance status.
A key consideration for alternative players in Luxembourg is to assess whether they fall under the new Pillar 2 rules.
Other reporting obligations may also apply, those include but are not limited to: FATCA and CRS, investor-level reporting and country-by-country reporting. Moreover, evaluating existing processes to identify areas for improvement is crucial.
We have the expertise to support you in operating your structure effectively. This is where value is created.
Restructuring
Tax rules are constantly evolving and becoming increasingly complex, not only in Luxembourg but also globally. Enterprises must anticipate and adapt to these changes to enhance their competitiveness in a responsible and sustainable manner. At each stage of an investment structure's lifecycle, tax implications should be closely monitored to identify opportunities for improvement and potential restructuring.
Our dedicated tax team can help you address various challenges you may be facing:
- Increasing cash repatriation efficiency
- Capitalization or refinancing
- Supporting implementation
- Conducting an up-to-date review of substance in the international context
- And more services to help you achieve your goals
Divestment
With KPMG by your side during the divestment phase, we can assist you to extract value and maximize the overall profitability of the investment. We’ll advise you on tax matters and any consequences of an investment disposal or structure liquidation.
A sound due diligence or tax fact book facilitates the selling process by anticipating any potential bidders’ questions.
We can assist you with:
- Defining an appropriate exit strategy
- Delivering vendor tax due diligence
- Reviewing and negotiating an SPA
- Supporting implementation
- Providing support for W&I insurance
- Liquidation of the entire structure or part of it
