The Luxembourg Government has abolished its 0.01% subscription tax for multi-national corporations who wish to establish investment vehicles in Luxembourg to pool their cross border pension assets.
Northern Trust, which welcomed the move, said it recognised the need of multi-national corporations to pool the assets of their various pension funds from around the world in order to increase the range of investments available to them, enhance corporate governance and reduce operating costs.
“This is another example of how the Luxembourg Government has recognised an opportunity to support and promote its’ financial marketplace working closely with the Luxembourg Banking Association and the Luxembourg Investment Funds Association,” says Ian Baillie, Senior Vice President, Managing Director for the Luxembourg office at Northern Trust. “It illustrates the decisive way in which the Luxembourg Government is facilitating the creation of innovative products in order to attract new assets. As a market leader in cross-border pooling, Northern Trust believes that multi-national corporations clients will benefit from the added tax benefits now offered by Luxembourg for their cross-border pooling solutions. In addition to being able to offer our multi-national clients cross-border pooling solutions for their pension fund assets which result in improved oversight, control and economies of scale, we will now also be able to offer even more significant tax efficiencies than before.”