Tax Troubles in Luxembourg: JBS’s Financial Strategies Under the Microscope
From 2019 to 2022, JBS is estimated to have reduced its global tax payments by approximately USD 221 to 442 million through Luxembourg-based financial arrangements, according to new research.
Overview of the Findings
Recent research by SOMO examines the tax structure of JBS, the world’s largest meat processing company, focusing on its use of entities in Luxembourg. The report estimates that JBS may have reduced its tax liabilities by between USD 221 and 442 million over a four-year period (2019–2022).
The methods identified in the research include the use of intercompany loans and the restructuring of dividend payment flows. These mechanisms are commonly used in international tax planning. According to SOMO’s estimates, approximately USD 293 million of corporate income tax and at least USD 148 million of withholding tax may have been avoided through these strategies.
Geographic Scope and Market Relevance
JBS operates globally, with major markets in the United States, Canada, and Mexico. The research suggests that the Luxembourg-based structures primarily affected tax bases in these countries, although it does not specify the exact jurisdictions involved or provide a country-by-country breakdown.
The analysis builds on earlier findings related to JBS’s operations in Australia and the United Kingdom, where similar structures were observed.
SEC Approval and Corporate Restructuring
In April 2025, the U.S. Securities and Exchange Commission (SEC) approved JBS’s application to be listed on the New York Stock Exchange. This follows a restructuring proposal that includes relocating its ultimate holding company to the Netherlands. Shareholders are expected to vote on the proposed changes on May 23, 2025.
Over 20 NGOs have expressed concerns about the restructuring and the potential financial and non-financial risks it may pose. Some investor groups and public officials have also called for greater scrutiny of JBS’s financial disclosures, particularly in relation to tax planning.
Disclosure and Materiality
According to the research, JBS has not publicly disclosed specific details about its tax planning strategies in Luxembourg. The report raises questions about whether these tax arrangements represent a material financial risk for investors under current disclosure requirements. No regulatory findings or legal actions have been reported in connection with these practices to date.
Company Background
JBS is a Brazil-based multinational with operations across several continents and a reported revenue of USD 73 billion in 2023. The company’s business activities include beef, poultry, and pork processing, and it is one of the largest employers in the global meat industry.
Source: https://www.somo.nl/jbss-global-tax-avoidance-hub-luxembourg/