Impact of the new interest limitation rules on Private Equity investments

The Luxembourg Parliament has now adopted the 2019 tax reform implementing the EU Anti-Tax Avoidance Directive (“ATAD”) and other anti-BEPS-related measures into Luxembourg tax law. When it comes to Private Equity (PE) investments, the implementation of the interest limitation rules is the most important tax law change given that debt funding, be it from internal or external sources, is an integral part of each and every private equity investment.