The Luxembourg Tax Authority issued a Circular on how a transparent entity or an arrangement that qualifies as Reverse Hybrid Entity must compute its net income that will be subject to Luxembourg corporate income tax. Further guidance on how to fill in the new form “205” that most Luxembourg transparent entities are required to file from tax year 2022 has also been released through a dedicated Frequently Asked Questions section on the Tax Authority’s website. Executive summaryAs of tax year 2022, transparent entities or arrangements that are incorporated or established in Luxembourg are, under certain conditions, treated as corporate taxpayers...