> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/why-luxembourg/tax-neutrality-and-cross-border-efficiency.md).

# Tax Neutrality & Cross-Border Efficiency

Luxembourg securitisation funds benefit from a favourable tax regime:

1. **Corporate tax.** The Fund is subject to Luxembourg corporate income tax (approximately 24.94% combined rate). However, commitments to investors — distributions, interest on notes, and similar payments — are generally deductible from the taxable base, resulting in minimal or zero effective taxation at the Fund level.
2. **Withholding tax.** Luxembourg does not impose withholding tax on distributions to non-resident investors from securitisation funds (subject to applicable tax treaties and specific conditions).
3. **Double tax treaties.** Luxembourg has an extensive network of 80+ double tax treaties, providing tax efficiency for cross-border structures involving assets and investors in multiple jurisdictions.
4. **VAT.** The Management Company's management services are generally VAT-exempt under Luxembourg law.
5. **No net wealth tax.** Luxembourg securitisation funds are exempt from net wealth tax.

This tax framework makes Luxembourg one of the most efficient jurisdictions globally for cross-border securitisation — minimising tax leakage between the underlying asset, the fund vehicle, and the investor.

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