Family assets company


 

• Form of the company: SA, SARL, SCA, COOPSA.
• Authorised activities:

o the holding, acquisition, management and realisation of financial assets such as shares or bonds, securitization, forward trading, SICAV, etc.
o in addition, a Family Assets Company (SPF in the French acronym) is authorised to issue securities and contract debts vis-à-vis its shareholders or third parties.

• Prohibited activities: commercial activity or holding real estate for commercial purposes.
• Family Asset Company Shareholders:

o May be physical persons, whether or not resident.
o Shareholders in the Family Assets Company may also be so-called asset entities whether or not residents, acting in the context of managing private assets.

• Supervision of the SPF by the administration of registration and domains.
• Taxation of SPF

o Taxation on constitution:

. Contribution duties/abolished since 1 January 2009
. Subscription tax: the base for taxation will be constituted by the paid up capital, debts and the issue bonus. The tax is payable quarterly. The annual tax is 0.25% with a minimum of 10 Euros and a maximum of 125,000 Euros.

o Taxation of income and dividends, profits or any other revenue received by the SPF.
o Taxation of capital gains on the sale of shares in the SPF: this depends on the legal status of the shareholder:

. if the latter is a Luxembourg resident, he/she will be taxed
. otherwise he/she will benefit from an exemption.

• Taxation of the SPF

o Wealth tax: the SPF is not subject to wealth tax.
o Value Added Tax: the SPF is not subject to Value Added Tax.
o The SPF does not benefit from treaties against double taxation or European Union Directives (Directive 90/435/CEE)

• Taxation of revenue received from the SPF

o On dividends paid to SPF shareholders:

. Luxembourg resident shareholders: no deduction at source but imposition of local taxes on the income of physical persons (30.38% from 15,000 Euros).
. Non-Luxembourg resident shareholders: no deduction at source.

Taxation of the SPF income falls within the exclusive remit of their state of residence.

o On interest paid for advances and debts of the SPF to physical persons:

. Luxembourg resident shareholders: releasing deduction at source of 10%.
. Non-resident shareholders: deduction at source of 15%.