Circular L.G. – A. No. 61 Of 8 December 2017 : Updated Rules On The Issuing Of Tax Residence Certificates For UCIs, Now Including RAIFs

In the new Circular of 8 December 2017 (the "Circular"), which replaces Circular L.G. - No. 61 of 12 February 2015 dealing with the issuing of tax residence certificates for UCIs, the Luxembourg Tax Administration now includes reserved alternative investment funds governed by the Luxembourg Law of 23 July 2016 on reserved alternative investment funds ("RAIFs" and "RAIF Law") in these guidelines. The Circular also includes an updated list of countries with double tax treaties ("DTT") that apply (or not) to UCIs. The following jurisdictions have been added to the list of countries granting DTT access to corporate UCIs: Andorra, Brunei, Croatia, Estonia, Serbia and Uruguay.

The issuing of tax residence certificates is of particular interest for UCIs to claim for reduced withholding tax rates or exemptions under applicable double tax treaties ("DTT"). However, a tax residence certificate for a corporate UCI (i.e., established under the form of a limited company) may also be issued on the basis of Luxembourg domestic laws. This certificate may in all events be issued for corporate UCIs if they have established their statutory seat or their central administration in Luxembourg.

For other UCIs (governed by...