Luxembourg's funds industry brought in over €1 billion for the Luxembourgish government for the first time in 2018.

According to the Ministry of Finance’s annual report, proceeds from the subscription tax have risen by €55 million .

The so-called collective investment funds ("Organisme de placement collectif") pay 0.05% tax on their net capital, while special funds and alternative investment fund reserves ("Fonds d’investissement alternatifs reserves") pay 0.01%.

Despite the low tax rate, the revenue from the subscription tax is extensive due to the incredibly high earnings generated by funds in Luxembourg. By the end of 2018, there were more than €4.300 billion worth of funds in Luxembourg.

The report also states that the number of rulings has further decreased since the previous year. In total, 117 rulings were granted and 31 rejected, 43% less than the previous year.

After Luxleaks, the government took a number of measures to regulate the practice, and a number of international laws – called BEPS (Base erosion and profit shifting) – were put in place. These measures should curb excessive tax optimisation.