On 19 December 2020, Luxembourg’s 2021 budget law was adopted by the Chamber of Deputies and it was published in the Official Journal on 23 December 2020.

The subscription tax rate to be paid by Luxembourg investment funds has been reduced for sustainable investments (as defined by EU “Taxonomy” Regulation 2020/852) made by these funds – refer to art. 174 of the UCI Law as amended.

In principle, the annual basic subscription tax rate amounts to 0.05% of net assets under management. Sustainable investments will benefit from a 0.04% rate when the fund invests at least 5% of its total net assets in sustainable investments. The rate applicable to sustainable investments will be reduced to 0.03%, 0.02%, or 0.01% when sustainable investments exceed, respectively, 20%, 35%, or 50% of the total assets of the fund.