Securitization vehicle Table

 Securitization vehicle
Practical use- Securitization of a portfolio of
securities
- Securitization as structure for intra
group financing activities
- Real estate securitizations
Applicable legislationLaw of 22 March 2004 (“Securitization Law”)
Eligible investorsUnrestricted.
Eligible assetsUnrestricted.
Securitization of any kind of risks relating to claims, other assets, or obligations assumed by third parties or inherent to all or part of the activities of third parties.
Risk diversification requirementsNo risk diversification requirements.
Legal FormA securitization vehicle may be set
up in the form of a company (SA,
Sàrl, SCA, SCoSA) or a fund
consisting of one or several coownerships
or one or several
fiduciary estates and managed by a
management company.
Segregated compartmentsYes
Capital requirementsIf the securitization vehicle is set up
as a company, it depends of the
form:
- SA / SCA: EUR 31,000
- Sàrl: EUR 12,500
If the securitization vehicle is set up
as a fund, there is no minimum
capital requirement.
Net asset value (NAV) calculation and redemption policyNot required.
Corporate income taxGeneral aggregate rate: 24.94%
Securitization vehicles should be
able to deduct from their gross
profits their operational costs and
the dividends or interests distributed
to the shareholders / creditors.
Therefore securitization companies
should not generate significant
taxable profits and should therefore
to a large extent be tax neutral.
Subscription taxNo subscription tax.
Wealth taxNo wealth tax.
Withholding tax on dividends / interests and capital gainsNot subject to withholding tax except
if EU Savings Directive applies.
Benefit from double tax treaty networkYes
Benefit from the EU Parent Subsidiary DirectiveYes
Authorisation and supervision by the CSSFNo (unless continuous issues of
securities to the public)
Possibility of listingYes
European passportNo, unless it falls under the scope of the full AIFMD regime.
Thin capitalization rules (debt-to-equity ratio)No debt-to-equity ratio.
Required Luxembourg service providers- Management Company (if the
securitization vehicle is set up in the form of a fund)
- Independent auditor
- No depository institution (unless subject to approval by
the CSSF)
- No administrative agent (if managed by the securitization company itself)