How is a fix taxed in Luxembourg ?

• Taxes: The FIS is completely exempt from income tax (IR), municipal business tax (ICC), and wealth tax (IF)
• VAT: In principle, services provided to an FIS are exempt from VAT, although the FIS itself is not VAT liable
• Contribution Duty on Formation: The standard regime applies (which was reduced to zero from 2009 onwards)

• No withholding tax on distributions made by the fund
• Non-taxable for non-resident taxpayers
• In Luxembourg, interest payments are not subject to withholding tax (except for Luxembourg residents)

An annual subscription tax of 0.01% is levied, calculated on the net asset value (NAV) of specialized investment funds, minus any exemptions (such as monetary placements, high-rated securities, other OPCs, microfinance funds, etc.).
However, the law of February 13, 2007, provides exemptions from the annual subscription tax for FIS whose exclusive purpose is collective investment in monetary instruments and deposits with credit institutions.