January 2021 - At the heart of regulatory and tax environments
Professionals of the Financial Sector (PSF) in Luxembourg
Given the considerable size of today’s Professionals of the Financial Sector (PSF) market, we thought it appropriate to share with you our understanding of the current, highly-specific PSF environment.
In line with the changes that have occurred in the last decade, 2020’s range of regulatory and tax developments included the amended CSSF regulation and new CSSF circulars relating to AML/CTF and IT requirements, alongside new tax reporting such as DAC 6. There has been a constant need to familiarize, comply, and adapt.
This 2021 edition of our guide aims to provide you with a detailed view of this ecosystem, without being strictly exhaustive as per the latest changes. This is an overview.
In the first chapter, we address the essential aspects of the legal and regulatory framework.
We primarily cover the authorization and licensing procedure, but also the supervision resources of the Commission de Surveillance du Secteur Financier, the supervisory authority, and the role played by réviseurs d’entreprises agréés who contribute to that supervision.
Chapter two describes the tax environment of PSF from a direct corporate tax and VAT perspective.
This chapter further highlights some hot tax topics applicable to PSF and gives an overview of incentives relevant to the PSF industry.
Lastly, we present a profile analysis of PSF, together with individual fast-reference sheets for each PSF setting out the most significant characteristics.
We hope you will enjoy reading this guide and gain further insight into PSF.