Luxembourg Circular n° 821 introduces new digital forms for UCI, SIF, and RAIF subscription tax filings
On 15 July 2024, the Luxembourg indirect tax authorities issued Circular n° 821, introducing new digital forms for the submission of quarterly subscription tax returns. These forms, accessible via MyGuichet.lu, apply to Undertakings for Collective Investments (UCI), Specialized Investment Funds (SIF), and Reserved Alternative Investment Funds (RAIF). The changes aim to simplify tax filing and improve the reporting process for investment entities.
Key changes introduced by Circular n° 821:
- Automatic Currency Conversion: The new forms include automatic conversion of non-euro currencies using the European Central Bank (ECB) exchange rates, simplifying the process for non-euro denominated funds.
- Provisional Tax Returns: Alternative funds, whose Net Asset Value (NAV) is not available by the legal deadline, can submit provisional returns based on the latest available NAV. A rectifying return must be filed once the official NAV is available, ensuring compliance with the quarterly tax filing deadline of the 20th day of the month following each quarter.
- Declaration of CSSF Numbers: The new forms require the inclusion of the CSSF identification numbers for legal entities (UCI, SIF, RAIF) and, where applicable, for individual compartments, ensuring accurate classification under the relevant tax regime.
- Fund of Funds Exemption: For entities using the “fund of funds” regime, the form requires additional details, including the corporate name and CSSF numbers of both the original fund and the target fund or compartments.
- Data Overview: A summary page will be available to users, displaying all entered data before final submission, allowing for easy review and correction.
Additional data requirements:
- The CSSF number for both the legal entity and sub-funds must be provided.
- For entities using the “fund of funds” regime, details about both the original and target funds or compartments must be included.
- The party responsible for submitting the tax return must be identified, including their corporate name and national identification number (matricule).
Transitional Period Until August 2026
To provide sufficient time for entities to transition to the new requirements, Circular n° 821 establishes a two-year transitional period during which both the existing and new forms will be accepted simultaneously. As a result, the current forms will remain valid and usable until the end of August 2026.
During this period, the Luxembourg tax authorities encourage entities to familiarize themselves with the new forms and to start implementing the necessary changes. This proactive approach will ensure compliance with the updated requirements, including the submission of additional data as stipulated in the new forms.
Furthermore, alternative funds whose Net Asset Value (NAV) is not finalized by the end of the quarter may submit a provisional tax return using the latest available NAV. This allows compliance with the filing deadline of the 20th day of the month following the quarter-end. However, a rectifying return must be filed once the official NAV becomes available, replacing the provisional return automatically.
Should you have any questions or need further support for the registration, feel free to reach out to our Investment Management team.
Luxembourg - Investment Funds - Impact of the Madoff fraud case
The Luxembourg regulator (CSSF) has on 22 December 2008 issued a press release analysing the impact of the Madoff fraud case on the Luxembourg investment funds.
The CSSF noted that the impact on Luxembourg investment funds which are directly or indirectly exposed to the Madoff case amounts to 1.9 billion Euro which represents only 0.15% of the total net assets of undertakings of collective investment as at 30 November 2008. The CSSF furthermore noted that it does not imply that this amount is entirely lost but that it represents the maximum responsibility at stake.
Investment Funds - Guidelines of the Committee of European Securities Regulators (CESR) concerning eligible assets for investment by UCITS
The CSSF has issued on 26 November 2008 circular 08/380 in relation to the CESR's guidelines concerning eligible assets for investment by UCITS. This Circular replaces circular 08/339.
The only amendment that has been made compared to circular 08/339 is point 24 paragraph 1. The amended paragraph reads as follows: “Techniques and instruments relating to transferable securities and money market instruments include, but are not limited to, collateral under the provisions of directive 2002/47/EC on financial collateral arrangements, repurchase agreements, guarantees received, and securities lending. The requirement to comply with the provisions of Article 21 of Directive 85/611/EEC imply in particular that if UCITS are authorized to use repurchase agreements or securities lending, these operations must be taken into account to calculate the global exposure of the UCITS.”
Investment Funds - UCITS risk management process - clarification on the information to be provided to the CSSF
Two particularly relevant pieces of legislation in the context of eligible assets for investments by UCITS have recently been implemented in Luxembourg. The first one is the Grand-Ducal Regulation dated 8 February 2008, which amends certain definitions specified in the 2002 Law, and which replicates closely the EC Directive 2007/16/EC.
The other piece of legislation is the groundbreaking CSSF Circular 08/339 (released on 19 February 2008) which points out, inter alia, that the provisions of the above Grand-Ducal Regulation must be read in conjunction with the CESR guidelines.
Investors should first note that UCITS already set up at the time of the implementation of the guidelines will benefit from an extension until 23 July 2008 at the latest to comply with the guidelines.
However, more fundamentally, what should be raised is the somewhat more flexible attitude adopted by the CSSF, particularly in circumstances where there is further need of interpretation of the provisions of the Grand-Ducal Regulation and the CESR guidelines. The impact of this Circular should however not be overestimated since the CSSF already fully applied the provisions of the Directive and the related CESR advices, and hence no significant changes are to be expected in practice. However, this evolution of the CSSF’s practice is especially remarkable throughout the appreciation of the circumstances in which a security embeds a derivative or permitted investment within the 10% trash ratio (e.g possibility to include regulated open-ended hedge funds, funds of hedge funds, real estate funds and commodity funds). This more flexible attitude of the CSSF is also to be noted in its administrative practice.
