Consolidation is the process whereby all of the accounts of the companies within a group are consolidated together, to present an overview of the group's financial position, its activities, its assets, liabilities and results.

Who needs to prepared consolidated accounts?

As a general rule, all companies that control one or more subsidiary companies, either solely or jointly, are required to draw up consolidated accounts, have them audited and publish them along with a consolidated management report. However, exceptions and special conditions apply.

Despite being a landlocked state Luxembourg has developed an attractive and reliable jurisdictions for shipping since the signing of the Maritime Act in 1990.

Luxembourg maritime administration (CAM) offers quality services which led to ISO 9001 certification in 2000. The country has been listed on the sector’s “white lists”. More than 250 vessels are registered in Luxembourg maritime register and Luxembourg shipping sector continues to grow in a continuously changing global economy.

With effect as of the 2022 tax year, Luxembourg transparent partnerships will become liable to corporate income tax (CIT) in relation to net income to the extent that such income is not otherwise taxed under the Luxembourg domestic tax law or the laws of any other jurisdiction, provided one or more associated non-resident entities (i) holding in aggregate a direct or indirect interest in 50% or more of the voting rights, capital interests, or rights to a share of profit in the Luxembourg partnership (ii) consider the Luxembourg partnership to be a taxable person.

In such a situation, the Luxembourg Law confirms that, while the Luxembourg partnership will be considered as a tax resident for CIT purposes, it will be exempt from net wealth tax (NWT).

Luxembourg can be considered as a safe haven in the heart of Europe with a solid political climate and stable public finances. It has been repeatedly rated as AAA and was recently reconfirmed by the credit rating agencies Fitch and DBRS on September 11th 2020 despite the Covid-19 pandemic.

Its effectiveness in implementing economic strategies, with particular reference to its financial sector, infrastructure, logistics and ICT sector, enables the country to ensure competitive advantages. Back in the 1980s Luxembourg was the first European country to develop an international investment funds hub and today Luxembourg ranks as the number two player worldwide after the US and number one in Europe with approximately 4,000 investment funds and € 4,300 million Assets under Management in 2019 as per the published report of Luxembourg Chamber of Commerce (Luxembourg Economy Open Dynamic Reliable 02/2020).