The Luxembourg government recently presented a draft bill (Bill) that would provide fund managers and their employees with greater legal certainty on how carried interest will be treated for tax purposes, as well as competitive tax conditions relative to other E.U. jurisdictions. The hope is that the clarity offered by the Bill will cause more high-level PE talent to relocate to Luxembourg, further bolstering its status as a lynchpin in the industry. The broader context and potential impact of the anticipated reforms were discussed by a panel at the Association of Luxembourg Fund Industry (ALFI) Private Asset Conference. Moderated by Keith O’Donnell, managing partner at ATOZ Tax Advisers Luxembourg, the panel featured Paddy Croft, head of tax at Astorg Asset Management, and Magnus Pantzar, global head of tax and structuring at EQT. This article summarizes the key takeaways from the program. For more insights from ALFI, see “ALFI/KPMG Survey Details Evolution and Growth of Luxembourg Private Debt Funds” (May 18, 2021); and “ALFI Chairwoman and Director General Discuss Luxembourg Fund Structures, FinTech and Brexit” (Sep. 3, 2019).