On too many occasions the difficulties which derive from a contractual relationship between a company and its directors or conducting officers are not anticipated and only dealt with after a dispute has arisen.
Choosing the appropriate status under which the executive officer or consultant will exercise its functions is a complex operation requiring that all legal aspects must be anticipated.
By drawing your attention to the tax, corporate, VAT, social security, contractual and employment law issues generated by such appointment, this training session aims at helping you to prevent the potential risks of recharacterization that might arise from such contractual relationship as well as to optimize your situation by choosing the legal status which will best suit you, irrespective of whether you are:
- A director, a manager, a conducting officer or a consultant resident in Luxembourg or elsewhere for tax purposes, or
- A company, be it a commercial company, an investment fund or a management company.
Presentation of the various statuses available to directors, managers, conducting officers and consultants:
- Alternative solutions
The appointment of executive officers
- Corporate aspects
- Employment law aspects
- Applicability of employment law?
- Applicability of the principle of contractual freedom?
- Practical consequences derived from the applicable legal framework
The remuneration of executive officers
- General tax aspects
- International and national tax aspects
- Taxation of employees
- General aspects
- In-kind remuneration
- International aspects
- Tax aspects of directors’ fees
- Daily management/tantièmes
- Consequences at the level of the company
- Risks for the company
- VAT treatment
- Qualification of management services from a VAT standpoint
- VAT treatment of Luxembourg resident executive officers
- VAT treatment of directors’ fees/tantièmes: principle and derogations
- Overview of VAT obligations and scope of deduction right
- VAT treatment of non-Luxembourg resident executive officers
- Social Security aspects
- Registration with the Social Security as employee
- Registration with the Social Security as self-employed
- Burden of Social Security contributions
Simone Baier (Counsel, Private Equity & Real Estate, Arendt & Medernach),
Sophie Weyten (Counsel, Tax Law, Arendt & Medernach),
Stéphanie Viot (Senior Associate, Tax Law, Arendt & Medernach),
Virginie Roger-Schroeder (Senior Associate, Employment Law, Arendt & Medernach).
Directors, conducting officers, consultants, employees of Luxembourg companies.
Luxembourg commercial companies, fund management companies and investment vehicles.
For any information, please contact us by e-mail firstname.lastname@example.org