Luxembourg
LuxSE Climate Bonds, Simpler Company Creation, Chinese Trade Plans
June 15 In the past month, Luxembourg and China have made significant strides in their economic relationship. First, during a Luxembourg trade mission to China last month, Minister of the Economy Etienne Schneider announced that in 2017 they will begin the project of linking Luxembourg to China’s Henan province by freight train. A few weeks later, on June 16, Lux Airport, the local airport operator, signed an agreement with Eastern Air Logistics, one of the largest air cargo terminal operators in Shanghai. Primarily, the goal was to promote the transport of temperature-sensitive pharmaceutical products between the two regions. Currently, there are 40 flights per week between China and Luxembourg and six of China’s biggest banks are headquartered in the Grand Duchy. This already strong relationship is looking toward continued growth. Full article
June 8 The Luxembourg Stock Exchange (LuxSE), the leader for international bond listing, has officially become a Climate Bonds Partner. With a 50% market share of all worldwide Green Bonds listings, LuxSE is strengthening its position in the area of green finance. The Climate Bonds Partners program runs initiatives that aim to increase investments in climate solutions and help define policy agendas. Full article
June 2 So-called “1-1-1” companies may be a reality in Luxembourg as soon as January 15, 2017. Bill 6777 will make it possible for entrepreneurs to easily set up businesses by one person, with one euro, in one day. The Luxembourg parliament is set to vote before summer break, although they have already suggested that the bill will pass. Full article
World
Updated German inheritance tax laws & US donor confidentialityEurope profit shifting prevention & new statutory audit rules
Germany, June 20 Germany agreed to change its tax exemption system so that heirs to corporate fortunes are no longer able to avoid paying inheritance tax. According to the country’s highest court, the exemptions from inheritance tax for corporate successions amounts to preferential treatment. Consequently, in 2014, this was ruled unfair and a deadline of June 2016 was given for the law to be changed. Under the new plan, most family-owned companies will still be exempt, but companies worth more than €26 million will see their exemptions reduced or eliminated. Full article
Belgium, June 18 The EU’s 28 finance ministers met in Luxembourg to reach a deal that would make it more difficult for multinationals in Europe to shift their profits to countries with lower tax rates. The agreement was on the verge of being accepted when Belgium and the Czech Republic walked out, calling upon an EU rule that allows countries additional time to make a decision. Notably, if one of the countries reject the deal, the ministers will be forced to start from scratch. Full article
Europe, June 17 New statutory audit rules, which were first adopted by the European Parliament and Council in 2014, have taken effect after a two-year road to implementation. By promoting effective audits throughout the EU, the rules will improve the financial transparency of companies and therefore increase investor confidence in the financial sector. They include a framework for all statutory audits and requirements for those pertaining to public-interest entities, such as companies and banks. Full article
US, June 14 The House of Representatives voted to deny the Internal Revenue Service (IRS) access to nonprofit donor lists. This bill is in response to the IRS’s inability to keep the information confidential in the past. It especially aims to prevent citizens from being treated unfairly for their political beliefs and claims that donor list have no place in audits. Full article
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