Originally Posted by KlenTelaris

It's a trick done by Luxembourg government, where you can basically deduct somany things it making final tax to be 1% only. That is why Luxembourg government is on target by EU for having "unfair" tax deductions compared to other countries. Tho the thing is, how some Spanish soccer players tried to get that 1% on their advertising selling income, but spanish tax man see that as tax evasion and as result they will go now on trial. So the reason why AWE have workforce there is to make their company appear legit, since having just company registered there but no workforce and not living there would make you tax evader in eyes of your local tax service.
Beside LU, apparently malta is doing same thing , where actual tax rate is only 5%.