Luxembourg

Dividends paid by a Luxembourg fully taxable company to its ‘corporate’ shareholders resident in a treaty country, which hold or commit themselves to hold a participation of at least 10% in the Luxembourg company (or shares with an acquisition price of at least EUR 1.2 million) for an uninterrupted period of at least 12 months, may be exempt from WHT (see Note 1 below for more details).

The following taxes are withheld on payments made. The WHT due on dividends paid to residents of a treaty country cannot exceed the non-treaty rate.

Notes

These notes are not extensive. The full text of the DTT should be checked for a comprehensive view on the conditions of application of reduced rates.

1. Under Luxembourg domestic law, no WHT is levied on dividends paid by a Luxembourg qualifying subsidiary to an entity that is:
   1. a collective entity falling within the scope of the Parent Subsidiary Directive
   2. a Luxembourg resident joint-stock company, which is fully taxable and does not take one of the forms listed in the LITL
   3. a PE of a collective entity falling under the previous categories
   4. a collective entity that is resident in a country with which Luxembourg has concluded a DTT and is fully liable to a tax corresponding to the Luxembourg CIT, or a domestic PE of such an entity
   5. a Swiss resident joint-stock company that is subject to Swiss CIT without benefiting from any exemption
   6. a joint-stock company or a cooperative company that is resident in an EEA member state (other than an EU member state) and is fully liable to a tax corresponding to the Luxembourg CIT, or
   7. a PE of a joint-stock company or of a cooperative company that is resident in an EEA member state (other than an EU member state), and
   8. at the date on which the income is made available, the beneficiary has been holding or undertakes to hold, directly, for an uninterrupted period of at least 12 months, a participation of at least 10%, or with an acquisition price of at least EUR 1.2 million in the share capital of the income debtor.

   Qualifying shareholders under (b) to (g) above need to be fully taxable collective entities subject in their country of residence to a tax similar to that imposed by Luxembourg. As a general rule, this requirement is met if the foreign tax is compulsorily levied at an effective rate of at least 8.5%, on a basis similar to the Luxembourg one.

   Provisions effective from 1 January 2016, amending the participation exemption regime, transpose effectively verbatim into Luxembourg law the 'anti-hybrid instrument' and 'common minimum anti-avoidance rule' (EU PSD GAAR) measures amending the EU Parent-Subsidiary Directive (PSD), adopted in July 2014 and January 2015, respectively.

   Anti-hybrid rule:  The dividend exemption does not apply to dividends or profit distribution income that are tax deductible in the hands of the distributing entity.

   EU PSD GAAR:  The participation exemption no longer applies to dividends distributed by a subsidiary resident in another member state (which would otherwise qualify for the participation exemption) if the income is received as part of an arrangement or a series of arrangements that, having been put into place for the main purpose or one of the main purposes of obtaining a tax advantage that defeats the object or purpose of the PSD, are not genuine having regard to all relevant facts and circumstances.

   An arrangement may comprise more than one step or part. For the purposes of the GAAR, an arrangement or a series of arrangements shall be regarded as not genuine to the extent that they are not put into place for valid commercial reasons that reflect economic reality. It is therefore increasingly important to continually monitor the substance and activities of entities in a structure.

2. Interest paid to non-residents generally is not subject to WHT in Luxembourg. However, interest that represents a right to profit participation on a bond may be assimilated to a dividend and subject to WHT. Further analysis should be made to determine the applicable reduced rate on the basis of the treaty (i.e. pursuant to dividend or interest clause).
3. Royalties paid to non-residents are not subject to WHT in Luxembourg, whether the companies are associated or not.
4. A WHT of 20% is withheld on defined interest income paid by a Luxembourg paying agent to resident individuals. Interest indirectly cashed through investment funds are out of the scope of this WHT.
5. DTTs have been signed with Albania, Argentina, Ghana, Kuwait and Rwanda, but these DTTs are not yet in force. DTTs with Kyrgyzstan and Oman have not been signed yet. 
6. The 0% rate applies if the beneficial owner has held, directly and without interruption, for at least 12 months, at least 10% of the capital of the company paying the dividends or a participation with an acquisition cost of at least EUR 1,200,000 in the company paying the dividends. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
7. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
8. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies where the recipient is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
9. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly or indirectly holds at least 30% of the capital of the company paying the dividends, and has invested at least an amount equal to 300,000 US dollars (USD) in the company paying the dividends at the date of payment of the dividends. The 10% rate applies in all other cases.
10. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
11. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 12 months prior to the decision to distribute the dividends. The 15% rate applies in all other cases.
12. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies if the recipient is a company (with the exception of general partnerships, limited partnerships, and cooperative societies) whose direct participation, held since the beginning of its financial year, in the capital of the company (with the exception of general partnerships, limited partnerships, and cooperative societies) paying the dividends is at least 25% or has an acquisition price of at least 250 million francs. The 15% rate applies in all other cases.
13. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly owns at least 25% of the capital in the company paying the dividends. The 10% rate applies in all other cases.
14. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies in all other cases.
15. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
16. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that owns at least 25% of the capital in the company paying the dividends. The 15% rate applies in all other cases.
17. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly or indirectly controls at least 10% of the voting power in the company paying the dividends. The 15% rate applies in all other cases.
18. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met.  The 10% rate applies in all other cases.
19. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
20. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
21. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 5% rate applies in all other cases.
22. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds for an uninterrupted period of at least one year at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
23. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
24. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
25. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the company paying the dividends. The 10% rate applies in all other cases.
26. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly or indirectly holds at least 25% of the company paying the dividends. The 15% rate applies in all other cases.
27. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner of the dividends is a company that is a resident of the other contracting state and directly holds at least 5% of the capital of the company paying the dividends throughout a 365 day period that includes the day of the payment of the dividends (for the purpose of computing that period, no account shall be taken of changes of ownership that would directly result from a corporate reorganisation, such as a merger or divisive reorganisation, of the company that holds the shares or that pays the dividends). The 15% rate applies in all other cases.
28. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company that directly or indirectly holds at least 50% of the capital of the company paying the dividends and has invested more than EUR 2 million, or its equivalent in the currency of Georgia, in the capital of the company paying the dividends. The 5% rate applies if the beneficial owner is a company that directly or indirectly holds at least 10% of the capital of the company paying the dividends and has invested more than EUR 100,000, or its equivalent in the currency of Georgia, in the capital of the company paying the dividends. The 10% rate applies in all other cases.
29. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership or an investment company) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases. An amending protocol signed by Luxembourg and Germany on 6 July 2023, which applies as from 1st January 2024, amends certain provisions of the German/Luxembourg DTT as well as the previous protocol. A specific provision has been added to cover the tax treatment applicable to dividends paid (i) by a German REIT, (ii) by a Luxembourg real estate company that is considered for tax purposes as being similar to a German REIT, or (iii) dividends paid to a UCI that should be subject to a maximum WHT of 15% (mostly relevant from a German tax perspective, as UCIs in Luxembourg are not subject to WHT).
30. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 7.5% rate applies if the company making the distribution is a resident of Luxembourg.
31. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10%t of the capital of the company paying the dividends. The 15% rate applies in all other cases.
32. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends or a participation with an acquisition cost of at least EUR 1.2 million in the company paying the dividends. The 10% rate applies in all other cases.
33. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership that is not liable to tax) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
34. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
35. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies in all other cases.
36. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
37. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the recipient is a company (excluding a partnership) that directly controls at least 25% of the voting power in the company paying the dividends. The 15% rate applies in all other cases.
38. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
39. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
40. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies in all other cases.
41. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that owns at least 25% of the voting shares of the company paying the dividends during the period of six months immediately before the end of the accounting period for which the distribution of profits takes place. The 15% rate applies in all other cases.
42. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
43. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 15% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
44. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
45. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met and if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
46. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
47. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
48. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that, at the time of payment of the dividends, has directly held, for an uninterrupted period of at least 12 months, at least 10% of the capital of the company paying the dividends or a participation with an acquisition cost of at least EUR 1.2 million in the company paying the dividends. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
49. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
50. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
51. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
52. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
53. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
54. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
55. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
56. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
57. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies if the recipient of the dividends is a company (other than a partnership) that directly owns at least 25% of the capital in the company paying the dividends. The 15% rate applies in all other cases.
58. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 2.5% rate applies if the recipient is a company, the capital of which is wholly or partly divided into shares or corporate rights assimilated to shares by the taxation law of that other state, that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
59. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
60. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
61. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 24 months prior to the date of payment of the dividends. The 15% rate applies in all other cases.
62. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies in all other cases.
63. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends. The 5% rate applies if the beneficial owner is an individual who directly holds at least 10% of the capital of the company paying the dividends and who has been a resident of that other contracting state for a period of 48 months immediately preceding the year within which the dividends are paid. The 10% rate applies in all other cases.
64. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
65. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends and has invested at least EUR 80,000 or its equivalent in rubbles. The 15% rate applies in all other cases.
66. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company that has directly held at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 12 months prior to the decision to distribute the dividends. The 15% rate applies in all other cases.
67. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies in all other cases.
68. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
69. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
70. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
71. The 0% rate applies if the recipient is the beneficial owner.
72. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies should the actual owner be a company that directly owns no less than 25% of the assets of the company that pays the dividends. The 15% rate applies in all other cases.
73. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
74. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
75. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends, provided that the recipient company has held the said capital for a minimum period of one year prior to the date of the distribution of dividends. The 15% rate applies in all other cases.
76. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 7.5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
77. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies in all other cases.
78. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner of the dividends is: (i) a company that is a resident of the other contracting state and directly holds, for at least two years, 10% of the share capital of the company paying the dividends, or (ii) a pension fund or a pension scheme. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
79. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies if the beneficial owner of the dividends is a collective investment vehicle established in the other territory and treated as a body corporate for tax purposes in that other territory. The 10% rate applies in all other cases.
80. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 15% rate applies in all other cases.
81. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
82. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
83. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 10% rate applies in all other cases.
84. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
85. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
86. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met or if the beneficial owner of the dividends is that other state itself, a local government, a local authority, or its financial institution thereof, which is a resident of that other state. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
87. Based on the new DTT between Luxembourg and the United Kingdom entering into force in 2024, no WHT shall apply to dividends paid by a company resident in one contracting state to a company resident in the other contracting state, provided the receiving company is the beneficial owner of the dividend payment. Also, WHT shall not exceed 15% where dividends are paid out of income (including gains) derived directly or indirectly from immovable property by an investment vehicle that distributes most of this income annually and whose income from such immovable property is exempted from tax (e.g. entities benefiting from the UK REIT regime). This provision shall, however, not apply where the beneficial owner of the dividend is a recognised pension fund established in the other contracting state and for which the WHT exemption under article 10 (2) a) of the new DTT shall apply.
88. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 0% rate also applies if the beneficial owner of the dividends paid by a company resident in Luxembourg is a company that is a resident of the United States and that has had, during an uninterrupted period of two years preceding the date of payment of the dividends, a direct shareholding of at least 25% of the voting stock of the company paying the dividends. This provision only applies to dividends attributable to that part of the shareholding that has been owned without interruption by the beneficial owner during such two-year period. Furthermore, this provision shall only apply if the Luxembourg company that distributed the dividend is engaged in the active conduct of a trade or business in Luxembourg (other than the business of making or managing investments, unless such business is conducted by a banking or insurance company). The 5% rate applies if the beneficial owner is a company that directly owns at least 10% of the voting stock of the company paying the dividends. The 15% rate applies in all other cases.
89. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
90. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly holds at least 25% of the capital of the company paying the dividends. The 15% rate applies in all other cases.
91. The 0% rate applies if the conditions of the Luxembourg participation exemption regime are met. The 5% rate applies if the beneficial owner is a company that directly or indirectly holds at least 50% of the capital of the company paying the dividends or has invested more than USD 10 million, or the equivalent in Luxembourg or Vietnamese currency, in the capital of the company paying the dividends. The 10% rate applies if the beneficial owner is a company that directly or indirectly holds at least 25% but less than 50% of the capital of the company paying the dividends and has invested not more than USD 10 millions, or the equivalent in Luxembourg or Vietnamese currency, in the capital of the company paying the dividends. The 15% rate applies in all other cases.