On 22 November 2012, the Luxembourg administration published Circular LIR No. 114/3 on loss carry forward in the case of a business succession. The most important aspects of the Decree are summarized below.
(a) Background.Currently, article 114(2)(3) of the Luxembourg Income Tax Act (ITA) for the purposes of loss carry forward requires that the person that incurred those losses is identical with the person deriving the income. In case of a business succession, this require…