A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

RETOUR SOMMAIRE

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2010

MAIN ACTORS AND STRUCTURES

These improvements can be done on different aspects of the tax: • VAT costs can be reduced (up to 10%) if the management companies and or the funds are located in a EU Member State with a low VAT rate. Luxembourg has the lowest standard VAT rate (15%), which is allowed by the VAT Directive 2006/112/EC. • Tax on income can be reduced by using various legal jurisdictions, hybrid financing con- tracts, tax treaties between jurisdictions, negotiations with tax authorities, or some spe- cific type of companies (i.e. for transparency).

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page 40 | A thorough understanding of PE