New taxation regime for the revenue of some intellectual property rights

As from 1 January 2008, a 80% exemption is granted on royalty income derived from specific IP rights acquired or created by Luxembourg companies.
14 months after the adoption of the law on the new IP exemption regime, the Tax Authorities issued the executive circular letter in order to clarify the qualifying conditions (IP assets covered / acquisition process / affiliation requirements).
This circular has been issued once the green light had been given by the EU on this new attractive regime.

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