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An overview by ATOZ Tax Advisers, Taxand Luxembourg
The Luxembourg Council of State has approved the carried interest draft law, which modernises the tax rules for carried interest received by individual managers of alternative investment fund managers (AIFMs).
This follows amendments by Parliament’s finance committee that addressed earlier concerns over overly broad beneficiary definitions. With its formal objection withdrawn, the Draft Law is now ready for a parliamentary vote and is expected to be adopted early in 2026, taking effect for the 2026 tax year.
Keith O’Donnell and Petya Dimitrova from our Luxembourg member firm ATOZ Tax Advisers have published a more detailed overview of the new draft law which can be read here.
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