Over the past few years, Luxembourg has become a focal point for Chinese companies' outbound investment by their setting up offshore companies in Luxembourg through holding and pooling investments. Luxembourg is also an obvious choice to locate all kinds of (pan-European) operations, whether it is a European headquarters for Chinese banks, where Luxembourg is to act as Europe's hub for renminbi products (Industrial and Commercial Bank of China (ICBC), Bank of China (BoC), Chinese Construction Bank), or for structuring tax-efficient acquisitions in Europe.

The Luxembourg Stock Exchange is one of the leading listing places for renminbi denominated bonds in Europe. Luxembourg is the most important hub for cross-border renminbi business in the Eurozone and it is the only country in Europe with renminbi denominated mutual funds.

b. Is the government generally supportive of COI? Which government, and regional, bodies are responsible for driving COI in your jurisdiction?

The government, banking and fund associations and the financial regulatory authority of Luxembourg have continually shown their support for foreign investors, including COI. The tax authorities in particular apply a pragmatic approach to foreign investment with a tax-efficient structure for repatriation of profits and access to a broad double taxation treaty network which includes China, Hong Kong and various other Asian countries.

Section 2: Investment vehicles

a. What are the most common legal entities and vehicles used for COI in your jurisdiction? How long do they take to become operational?

Undertakings for Collective Investment in Transferable Securities (UCITS) is the retail fund vehicle distributed on a pan-European basis that benefits from a European passport. This makes them freely marketable throughout Europe and subject only to a simplified notification procedure. The 2008 Memorandum of Understanding signed between Luxembourg and China qualifies UCITS as eligible assets in China under the Qualified Domestic Institutional Investors (QDII) regime. Luxembourg is one of very few financial centres to have such an agreement in place with China.

Luxembourg has developed various alternative investment products and bespoke investment structures such as hedge funds and funds of hedge funds, private equity vehicles and real estate funds. The recent implementation of the alternative investment fund management (AIFM) regime is expected to create a global alternative investment fund branch for non-UCITs funds. In 2004 and 2007 respectively, Luxembourg created the investment company in risk capital (SICAR) and the specialised investment fund (SIF). In addition, financial holding companies (SOPARFIs) are unregulated entities often used for the efficient structuring of investments in combination with SIFs and SICARs.

UCITs, SIFs and SICARs are all regulated entities for which the approval process by the Luxembourg financial regulatory authority (CSSF) may take two to three months.

For many years now, Luxembourg has been used for international acquisitions structuring via unregulated vehicles (SOPARFIs), which can be up and running within a few weeks.

In order to offer high net worth individuals (HNWI) a flexible vehicle for their wealth management, Luxembourg introduced in 2007 the Family Wealth Management Company, commonly known as the SPF (Société de gestion de Patrimoine Familial), for the purpose of the acquisition, holding, management and sale of financial assets.

A draft bill has been presented to Parliament which is soon expected to be adopted into law and will introduce the Luxembourg private foundation regime (foundation patrimoniale), a new wealth management regime expected to be a suitable solution to secure private or business assets, to separate economic ownership from decision-making authority or to protect private spheres.

b. What are the key requirements for establishment and operation of these vehicles which are relevant to COI (e.g. is there a requirement for local directors)?

There is a minimum share capital for the UCITs, SIFs, SICAR and SOPARFI. Regarding the SOPARFI and the SIFs and SICARs established in corporate form, there are no residence or nationality requirements for the shareholders or board members. However, under Luxembourg law, a company is of Luxembourg nationality if its domicile (its seat of administration) is located in Luxembourg. Having local Luxembourg directors supports the position that the seat of administration is located in Luxembourg.

Section 3: Investment approval

a. For foreign investment approval (including any national security review) explain the approval process and timing.

There are no limits on foreign ownership or control, only general screening of investment, which is non-discriminatory between foreign and domestic investors.

b. Briefly explain the investment restrictions for any specially regulated/restricted sectors (natural resources, financial services, telecoms and infrastructure, etc), including whether the government is entitled to any special rights (e.g. golden share) in those sectors.

There are no official restricted sectors.

c. Which authority oversees competition clearance, when is notification mandatory, and what is the merger clearance process (including whether pre- or post-closing)?

The Competition Council (le Conseil de Concurrence) monitors compliance with competition law. The European Commission has jurisdiction over anti-competitive practices.

There is no compulsory filing for mergers in Luxembourg. Where acquiring stakes in listed companies, applicable stock exchange rules may require notification.

d. Are there any unique processes that potentially could block a foreign investment, e.g. consent from labour unions?

No.

e. Are there approval requirements when a foreign investor increases or exits its investments?

No.

Section 4: Tax and grants

a. Are there tax structures and/or favourable intermediary tax jurisdictions that are particularly useful for FDI into the country?

Luxembourg is widely used as an intermediary tax jurisdiction for FDI in other countries. The use of Luxembourg as a holding company location may offer substantial tax advantages to Chinese companies making outbound investments. The abovementioned SOPARFI refers to ordinary, unregulated, fully-taxable Luxembourg resident companies whose main activity is the holding of shares benefiting from the participation exemption. The participation exemption is a key element of the Luxembourg corporate tax system and is aimed at avoiding double taxation of profits.

The Luxembourg-Hong Kong double tax treaty makes Hong Kong and Luxembourg a desirable path for Chinese investment in Europe, as it combines two favourable tax regimes and allows flexible and tax-efficient returns on profits and cash from Luxembourg to Hong Kong.

b. What are the applicable rates of corporate tax and withholding tax on dividends?

The total corporate income tax is moderate by European standards at 29.22%. Luxembourg levies a 15% withholding tax on dividends. However, no tax is withheld where dividends are paid to a qualifying company under the EU parent-subsidiary directive. Tax treaty relief may also be applicable.

c. Does the government have any FDI tax incentive schemes in place?

Luxembourg offers a very attractive tax regime for IP revenue: 80% of income derived from IP rights acquired or created by a Luxembourg company or permanent establishment, and gains from the disposal of such rights, are exempt from income tax (excluding the acquisition of IP rights from a related party).

Luxembourg is also the tax jurisdiction of choice when it comes to investment funds as they benefit from a wide range of exemptions: no taxation on income and capital gains, no withholding tax (unless the EU savings directive applies) and no wealth tax.

Shipping companies also have the benefit of various tax incentives, such as tax credits and exemption from municipal business tax.

d. Other than through the tax system, does the government provide any other financial support to FDI investors? If so, please provide an overview.

Successive Luxembourg governments have been proactive in attracting foreign investments in various industries through offering capital investment subsidies, equipment financing and financial assistance (through the State lending agency, SNCI), loans at reduced rates, cash grants for investments in high technology and R&D of innovative products as well as industries involved in manufacturing processes and services, and financial incentives to audio visual productions using production and location facilities within the Luxembourg territory.

e. Are there any reciprocal tax arrangements between your jurisdiction and China? If so, how can they aid investors?

There is an agreement between China and Luxembourg for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital.

Section 5: Forex controls and local operations

a. What foreign currency or exchange restrictions should foreign investors be aware of?

None.

b. Are there any legal restrictions on bringing in foreign workers and how difficult is it for foreign investors to secure expatriate visas for shareholder representatives, senior managers and workers in practice?

A citizen of a Third Country (a non-EU country) requires a permit to work as an employee. This permit also serves as a residence permit. This work permit must be applied for before entering the country unless the person is already a legal non-working resident.

As an incentive for attracting highly skilled workers to Luxembourg, certain costs borne by the employer for the move, stay and exit of the employee in Luxembourg, may be exempt from tax to the employee during a five year period (while remaining tax is deductible at the level of the employer).

Section 6: Dispute resolution

a. Does your jurisdiction have a bilateral investment protection treaty with China or other jurisdictions commonly used for investing into the country?

There is an agreement between the Belgian-Luxembourg Economic Union and the Government of the People's Republic of China on the reciprocal promotion and protection of investments, which was signed on June 6 2005.

b. How efficient are local courts' enforcement and dispute resolution proceedings, and are there any procedural idiosyncrasies foreign investors must be aware of?

Luxembourg courts are reasonably efficient. Civil and commercial disputes before the District Court are introduced through a writ of summons. Interim remedies are sometimes available in urgent cases to avoid imminent damage or to abate an illegal nuisance.

c. Do local courts respect foreign judgments and are international arbitration awards enforceable?

Luxembourg is party to a number of treaties for the reciprocal recognition and enforcement of foreign judgments, notably the Brussels I EU Regulation and the Lugano Convention of October 30 2007. In the absence of such a regulation or convention, recognition and enforcement of foreign judgments may be obtained in accordance with applicable exequatur provisions and general Luxembourg rules applicable to the recognition and enforcement of foreign court decisions. In order to declare the foreign judgment enforceable, the Luxembourg court will verify certain matters such as the enforceability of the foreign judgment in the country of origin, that the country of origin had jurisdiction according to its own rules and to Luxembourg conflict of jurisdiction rules, that the foreign judgment was regular according to the procedural rules of the country of origin and did not violate the rights of defence, and, most importantly, that the foreign judgment is not contrary to Luxembourg international public policy.

Luxembourg is party to the New York Convention of June 10 1958 on the Recognition and Enforcement of Foreign Arbitral Awards and will recognise arbitral awards as binding, and will enforce them in accordance with the rules of procedure of Luxembourg, under the conditions laid down in the New York Convention (which lays down grounds for refusal of recognition and enforcement of an award).

d. Are local judgments and arbitration awards from your jurisdiction generally enforceable in other jurisdictions?

The answer to this question is really dependant on the jurisdiction in which enforcement of Luxembourg judgments and arbitration awards is sought. However, it is certainly relevant that as far as enforcement within Europe is concerned, Luxembourg judgments are enforceable in other European countries pursuant to the Brussels I EU Regulation and the Lugano Convention. As mentioned above, Luxembourg is also party to the New York Convention, which is based on the reciprocity for the recognition and enforcement of arbitration awards made in the territory of another contracting State.

Alain Steichen

Alain Steichen is partner and managing director of Bonn Steichen & Partners. His main area of expertise is Tax. Until 1996, he was the head of tax at Price Waterhouse Luxembourg.

As a recognised tax expert, he represented the Ministry of Finance in various State Aid discussions with the Brussels Commission and advised Chase Manhattan in the merger acquisition of JP Morgan and Mittal in the Arcelor takeover. Steichen recently advised Pfizer on the sale of its Nutrition business to Nestlé for US$10 billion and on the US$ 7 billion restructuring of its Animal Health Business Zoetis.

Author of several books and articles on Luxembourg accounting, tax and company law, he has been associate professor of taxation at the University of Luxembourg since 1994.

Laurent Lazard

Laurent Lazard is a partner of Bonn Steichen & Partners. His practice areas are capital markets and banking & finance.

Praised for his experience in global debt capital markets, he also focuses on structured finance transactions. Lazard has advised originators and arrangers on numerous securitisations in particular of car loans and receivables. He has developed significant expertise in setting up platforms for the issuance of structured finance instruments and assisted several international banks on multi-billion Euro structured notes programmes.

He also advises major banks on acquisition finance transactions. He holds law degrees from the University of Paris (Paris II) and the University of Chicago and speaks English, French and German.

卢森堡

Alain Steichen 和 Laurent Lazard
Bonn Steichen & Partners


第一节：中国境外投资

1. 您国家吸引中国境外投资或您政府有意吸引中国境外投资的主要有哪些行业？

卢森堡政府有意吸引外商投资的一些主要行业，有生物技术/衞卫生技术、电子商务、物流和生态技术。

过去数年，卢森堡成为中国企业境外投资的重心，中国企业在卢森堡设立境外公司持有并聚集投资。不管是作为中资银行(例如中国工商银行、中国银行、中国建设银行)的欧洲总部，并为人民币产品的欧洲枢纽，或是作为构建欧洲的节税并购之地，卢森堡都是发展所有 (泛欧) 业务的当然之选。

卢森堡证券交易所是人民币债券在欧洲上市的主要场所之一。卢森堡是欧元区跨境人民币业务的最重要的枢纽，也是欧洲唯一持有人民币共同基金的国家。

2. 政府一般支持中国境外投资吗？在您国家，哪些政府或地方机构负责推动中国境外投资？

卢森堡政府、银行、基金组织及金融监督管理机构一直支持外商投资，包括中国境外投资。尤其是税收机关，以务实思维看待外商投资，以节税方式返还利润，以及参与双重税收条约的网络，包括中国、香港和多个其他亚洲国家。


第二节：投资工具

1. 您国家最常用于中国境外投资的法人实体和工具有哪些？要多久才可营运？

可转让证券集体投资企业 (UCITS) 是分布于泛欧的零售基金工具，受惠于欧洲护照，只需通过简化通知程序，便可以在整个欧洲自由营销。卢森堡和中国在2008年签订的谅解备忘录，使可转让证券集体投资企业获分类为中国合资格境内机构投资者制度下的合资格资产。卢森堡是与中国订立这项协定的少数金融中心之一。

卢森堡已发展多项替代投资产品及定制投资结构，例如对冲基金、对冲基金母基金、私募股权投资工具及房地产基金。替代投资基金管理 (AIFM) 制度最近实施，预计可作为全球替代投资基金的分支，管理可转让证券集体投资企业以外的基金。卢森堡分别在2004年和2007年设立风险资本 (SICAR) 投资公司及专项投资基金 (SIF) 投资公司。此外，金融控股公司 (SOPARFI) 是不受监管的公司，一般用以迅速构建投资，与专项投资基金投资公司和风险资本投资公司一并使用。

可转让证券集体投资企业、专项投资基金投资公司和风险资本投资公司全是受监管的公司，卢森堡金融监管当局 (CSSF) 需时两至三个月审批。多年来，卢森堡一直是构建国际并购的选址，通过不受监管的公司 (金融控股公司)，可于数星期内设立运作。

为了向高资产净值人士提供具灵活性的方法管理财富，卢森堡在2007年引入家庭财富管理公司，统称为SPF (Société de gestion de Patrimoine Familial)，目的是收购、持有、管理和销售金融资产。

有关法律草案已提交国会，预计快将获通过为法律，在卢森堡推行私募基金制度 (foundation patrimoniale)。这项新财富管理制度预计是获取个人或企业资产、把经济拥有权从决策机构分隔起来，或保障私人领域的合适方法。

2. 设立和营运与中国境外投资相关的企业主要需符合什么要求 (例如：有没有规定必须要有本地董事)？

可转让证券集体投资企业、专项投资基金投资公司、风险资本投资公司和金融控股公司设有最低股本要求。有关金融控股公司及以公司形式设立的专项投资基金投资公司和风险基金投资公司，对股东或董事会成员均没有居住地或国籍规定。然而，根据卢森堡法律，如一间公司的居住地(管理所在地)在卢森堡，便属于卢森堡公司。拥有卢森堡当地的董事，是管理所在地设在卢森堡的证明。


第三节：投资审批

1. 关于外商投资的审批 (包括任何国家安全审查)，请说明审批程序和所需时间

外商所有权或控制不受限制，只需接受一般投资审查，不论是外商或本地投资者均一视同仁。

2. 请概述任何特别受监管/限制的行业 (自然资源、金融服务、电信和基础设施等)的投资限制，包括政府在有关行业是否有特别权利 (例如黄金股份)。

没有受政府限制的行业。

3. 哪个机关负责监管竞争审查？什么时候报告是强制性的？并请概述合并审查程序(包括合并前后)。

竞争局 (le Conseil de Concurrence) 负责监察竞争法的遵行情况。欧盟委员会对反竞争行为具管辖权。

在卢森堡，合并没有强制报告的规定。如收购上市公司股权，适用的交易所规则或会要求报告。

4. 有没有任何特别的程序例如工会同意之类，有可能会阻止外国投资的呢？

没有。

5. 外国投资者如增加或撤回投资，有什么审批要求？

没有。


第四节：税收及补助

1. 有没有一些税务结构或有利的中介税务管辖区，是对外商直接投资卢森堡尤其有用的？

卢森堡是外商直接投资其他国家的热门中介税务管辖区。以卢森堡为控股公司的所在地，对中资公司的对外投资可提供大量税务优惠。以上提到的金融控股公司指常驻卢森堡的普通、不受监管和足缴税款的公司，主要业务是持有股份，且受惠于股东免税。股东免税是卢森堡企业税收制度的主要元素，旨在避免对利润双重征税。

卢森堡与香港的双重征税协议，使香港和卢森堡成为中国投资在欧洲的理想途径，既结合两个优惠的税收制度，又对卢森堡到香港的利润和现金提供具灵活性和节税的回报。

2. 企业所得税和股息预提税的适用税率是多少？

按欧洲标准，总企业所得税定于29.22%的中等水平。卢森堡征收15%股息预提税。不过，如根据欧盟母子公司指令向合资格公司支付股息，则不必扣缴税款。税收协定减免也可同时适用。

3. 政府是否已设立外商直接投资税务优惠制度？

卢森堡为知识产权收入提供非常吸引的税务制度：卢森堡公司或常设机构受让或创造的知识产权80%的所得，以及出售知识产权所得利润均免征所得税 (从关联方受让知识产权除外)。

在投资基金方面，卢森堡也是税务管辖区的不二之选，因为企业可享有范围广泛的豁免：所得和财产收益免税，没有预提税 (欧盟储蓄指令适用情况除外)，也没有财富税。

船务公司也获多项税务优惠 (税收减免、免征城市营业税)。

4. 除了通过税务制度，政府还有向外商直接投资者提供其他财务支持吗？如有，请加以概述。

历界卢森堡政府多年来一直积极吸引各行业的外商投资，方法是提供资本投资补贴，(通过国家借贷机关 (SNCI))提供设备融资和财务资助，提供减息贷款，为投资高科技、创新产品研发、生产程序和服务所涉及产业提供现金补助，以及为使用卢森堡内生产和厂房设施的音像产品生产提供财务优惠。

5. 您国家与中国之间有没有任何相互税务安排？如有，这些安排如何帮助投资者？

中国和卢森堡已订立对所得和财产避免双重征税和防止偷漏税的协定。


第五节：外汇管制及本地经营

1.有什么外币或外汇限制是外国投资者需要注意的？

没有。

2. 引入外国员工有什么法律限制？在操作上外商投资者为股东代表、高级经理和员工取得外国员工签证有多困难？

第三国家(非欧盟国家)国民须申请许可证才可作为员工工作。这许可证也是居留许可证。除非已是合法非工作居民，否则入境前必须申请工作许可。

为吸引人才到卢森堡工作，雇主为员工迁居、停留和撤离卢森堡所承担的费用，员工在五年内可获免征税 (雇主可扣除其余的税款)。


第六节：争议解决

1. 您国家是否有和中国或其他国家签订关于投资您国的双边投资保障条约？

比利时-卢森堡经济联盟与中华人民共和国政府在2005年6月6日签订了《关于相互促进和保护投资的协定》。

2. 当地法院的执法和争议解决程序的效率如何？有什么特别的程序是外商投资者需要注意的？

卢森堡法院的效率不错。地方法院的民事和商事争议经传票提出。遇上紧急个案，或会有临时救济，以避免即时损害或消除非法滋扰。

3. 当地法院尊重外国判决吗？可执行国际仲裁裁决吗？

卢森堡是多个相互认可和执行外国判决条约的缔约方，最为人所知的是《欧盟布鲁塞尔条例(一)》及2007年10月30日的《卢加诺公约》。如没有类似的条例或公约，可根据适用的许可执行条款及适用于承认和执行外国法院决定的一般卢森堡规则，承认和执行外国判决。为公告可执行的外国判决，卢森堡法院会核实一些事项，例如在所在国执行外国判决的情况，而根据该国规则和卢森堡司法管辖区冲突规则，该国具有司法管辖权，且根据该国诉讼法，该外国判决是符合常规的，没有违反抗辩的权利。更重要的是，该外国判决不会有违卢森堡国际公共政策。

卢森堡是1958年6月10日签订的承认及执行外国仲裁裁决的纽约公约的缔约方，承认仲裁裁决具约束力，并会根据纽约公约所定下条件，按卢森堡诉讼法执行。纽约公约明确拒绝承认及执行裁决的理由。

4. 您国家的判决和仲裁裁决一般会在其他国家执行吗？

此问题的答案很视乎卢森堡判决和仲裁裁决在哪个国家执行。不过，如在欧洲执行，根据《欧盟布鲁塞尔条例(一)》及《卢加诺公约》，卢森堡判决可在其他欧洲国家执行。如上所述，卢森堡是纽约公约的缔约方，仲裁裁决的执行是根据另一缔约方承认和执行仲裁裁决的对等待遇。

Alain Steichen
Alain Steichen是Bonn Steichen & Partners的合伙人和董事总经理，专业领域是税务。截至1996年，他是卢森堡普华永道的税务主管。

他是公认的税务专家，曾代表财政部与布鲁塞尔委员会进行国家援助讨论，并向大通曼哈顿与摩根大通的收购合并和米塔尔收购安赛乐的交易中提供谘询。Steichen最近向辉瑞以100亿美元出售营养业业务予雀巢公司，以及以70亿美元重组其动物卫生业务硕腾提供法律意见。他的著作包括卢森堡会计、税务和公司法，并自1994年起任卢森堡大学税务学副教授。

Laurent Lazard
Laurent Lazard是Bonn Steichen & Partners的合伙人，执业领域为资本市场、银行及融资。

他在全球债务资本市场的经验备受赞赏，专注于结构性财务交易。他向汽车贷款和应收帐款等的多项证券化交易的发起人和发行人提供法律意见。他在建立平台发行结构性财务工具经验丰富，并协助几家国际银行数以十亿至千亿元计的欧罗结构化票据项目。

他也向主要银行的收购融资交易提供法律意见。他持有巴黎第二大学和芝加哥大学的法律学位，懂英语、法语和德语。