The SOPARFI is a Luxembourg tax measure business corporations may benefit from (joint-stock or limited-liability companies, fore example).
Its purpose is to hold shares in other companies.
Subject to certain conditions, the benefits of a SOPARFI are:
- Exemption from Luxembourg’s income tax on dividends received from subsidiary companies
- Exemption of capital gains from the sale of subsidiary companies
- The SOPARFI is covered by treaties to avoid double taxation as regards tax withholdings on subsidiary companies.
