The Private Wealth Management Company

LUX_VEHICLES_private_wealth_company

  1. Introduction
  2. Eligible Investors
  3. Legal form
  4. Authorisation and supervision
  5. Capital requirement
  6. Investment policy and corporate object
  7. Legal and regulatory framework
  8. Custodian bank
  9. Central administration
  10. Offering document and annual report
  11. Issue of new shares
  12. Dividends distribution
  13. Net asset valuation
  14. Compartments
  15. Tax regime
  1. Introduction

The Private Wealth Management Company (hereafter referred as SPF) has been introduced by the law of May 8, 2007 in order to propose an alternative to H29 held by private individual investors. This law is a consequence of the decision of the EU commission on the incompatibility of the H29 regime with EU state aid rules.

The SPF is a vehicle designed for the management of the Private Wealth in a tax efficient manner providing for a deferral of the taxation when proceeds are distributed to the investors.

  1. Eligible Investors

The scope of eligible investors is defined in article 2 of the law. The shares of the SPF are strictly reserved to

The second category refers to trust, foundation or “stichting administratie kantoor”. The comments on the initial draft project mention that shares can also be owned by a group of individuals forming a restricted club of investors. The shares of the SPF may further not be quoted on a stock market.

  1. Legal forms

There are three corporate legal forms which can be used :

  1. Authorisation and supervision
  1. Capital requirement
  1. Investment policy and corporate object
  1. Legal and regulatory framework
  1. Custodian bank
  1. Central administration / domiciliation
  1. Offering document and annual report
  1. Issue of new shares
  1. Dividends distribution
  1. Net asset valuation
  1. Compartments
  1. Tax regime
  1. Practical example on the computation of the subscription tax

Example (1)

Share capital
Share premium
Debt
31.000 €
69.000 €
1.000.000 €

The basis of the subscription tax will be :
= 31.000 € + 69.000 € + (1.000.000 € – (8 * (31.000 € + 69.000 €)))
= 100.000 € + 1.000.000 € – 800.000 €
= 300.000 €

Example (2)

Share capital
Share premium
Debt
31.000 €
69.000 €
800.000 €

The basis of the net wealth tax will be :
= 31.000 € + 69.000 € + (800.000 € – (8 * (31.000 € + 69.000 €)))
= 100.000 € + 800.000 € – 800.000 €
= 100.000 €

Exemple (3) : optimisation of Example one

Share capital
Share premium
Debt
31.000 €
69.000 €
1.000.000 €
New share capital
Share premium
Debt
53.222 €
69.000 €
977.778 €

The basis of the net wealth tax becomes:
= 53.222 € + 69.000 € + (977.778 € – (8 * (53.222 € + 69.000 €)))
= 122.222 € + 977.778 € – 977.776 €
= 122.222 € +2 €
= 122.224 €