2006/940/EC: Commission Decision of 19 July 2006 on aid scheme C 3/2006 implemented by Luxembourg for 1929 holding companies and billionaire holding companies (notified under document number C(2006) 2956) (Text with EEA relevance)

The tax scheme currently in force in Luxembourg in favour of holding companies exempted on the basis of the Law of 31 July 1929 (hereinafter called exempt 1929 holding companies) is a state aid scheme incompatible with the common market.

Luxembourg shall abolish the aid scheme referred to in Article 1 or amend it to make it compatible with the common market by 31 December 2006 at the latest. As from the date of notification of this Decision, the advantages of the scheme or of its component parts may no longer be conferred on new beneficiaries. In the case of exempt 1929 holding companies benefiting under the scheme referred to in Article 1 on the date of this Decision, the scheme's effects may be prolonged until 31 December 2010 at the latest. However, those companies which continue to benefit under the scheme referred to in Article 1 until 31 December 2010 may not form the subject matter of any total or partial transfer for consideration of their capital throughout the duration of this transitional exemption arrangement.

Within two months of notification of this Decision, Luxembourg shall inform the Commission of the measures it has taken to comply with it.

This Decision is addressed to the Grand Duchy of Luxembourg.