What is account 115 Luxembourg?

The so-called 115 account was introduced by the new Luxembourg standard chart of accounts (PCN) in 2009 and refers to the contributions by a shareholder to the equity without issuance of shares. The PCN has formalized the Luxembourg practice.

What is an account 115 contribution?

An equity contribution by means of an “account 115 contribution” involves a contribution of value in the special equity reserve account of the company as reflected in the Luxembourg standard chart of accounts (“LSCA”) under sub-account 115 named “capital contribution without issue of shares”.

What is a capital contribution reserve?

A capital contribution reserve typically arises when an irrevocable gift has been made to a company by a shareholder (ie new shares are not issued in consideration).

What are alphabet shares Luxembourg?

Also frequently encountered in the Luxembourg market is the use of alphabet shares. This technique involves the issuance of several classes of shares whose economic rights are not correlated to only certain portfolio assets, but rather apply to a pool of assets as a whole and/or to specific investment periods.

Is share premium a distributable reserve Luxembourg?

The account 115 (« apport en capitaux propres non rémunéré par des titres ») as mentioned in the Luxembourg chart of accounts, and the share premium account of a Luxembourg company constitute freely distributable reserves, unless otherwise provided in the articles of association of the company.

Is there capital gains tax in Luxembourg?

Capital gains derived from the disposal of movable properties are subject to Luxembourg progressive income tax rates (0% to 45.78%), provided the holding period is less than six months and to the extent that the total capital gains exceed EUR 500.

Does Luxembourg tax foreign income?

Foreign income A Luxembourg tax resident company is liable for CIT on its worldwide income. Foreign-source income is therefore taxable in Luxembourg, unless a DTT provides for an exemption.

How do you account for capital contribution?

What is Contributed Capital?

1. Receive cash for stock. Debit the cash account and credit the contributed capital account.
2. Receive fixed assets for stock. Debit the relevant fixed asset account and credit the contributed capital account.
3. Reduce a liability for stock.

What is the difference between paid-in capital and contributed capital?

contributed capital is that the latter is referred to as the total value of cash and assets that shareholders provided to a company in exchange for the company’s shares. Additional paid-in capital refers to the value of cash or assets that the shareholders provided over and above the par value of the company’s shares.

Do alphabet shares pay dividends?

Like many technology stocks, Alphabet has never paid a dividend to shareholders.

Are alphabet shares legal?

Alphabet shares in family companies Such shares can be voting or non-voting, redeemable or non-redeemable and have such other rights or restrictions, as required.