Skip to content Skip to footer

Hybrid instruments and deduction of interests

In general, any interest paid by a Luxembourg company to one of its creditors is deductible from the taxable base of the company. If it pays interest relating to a loan taken out with a bank or any other creditor, it will be able to deduct the interest from its taxable base.

Description

In general, any interest paid by a Luxembourg company to one of its creditors is deductible from the taxable base of the company. If it pays interest relating to a loan taken out with a bank or any other creditor, it will be able to deduct the interest from its taxable base.

Here are different financial instruments generally used by companies:

  • Simple bonds
  • Profit Participative bonds
  • Convertible bonds
  • Equity/Participant bonds
  • Equity loans
  • Tracker-certificate
  • PEC (Preferred Equity Certificates)
  • CPEC (Convertible Preferred Equity Certificates)

Expert assistance from Gearup Solutions

For expert accounting, legal and fiscal advice in relation to setting up your Special Purpose Vehicles contact Gearup Solutions, a leading independent provider of corporate services to Luxembourg companies and clients from across the world.

Our in-house expertise can assist corporate clients explore a range of hybrid instruments suitable for a number of different types of assets. To request one of our highly informative brochures please click on the boxes to the right of this page.

Would you like further information, Do you have any requests ? Click here