EU list of non-cooperative tax jurisdictions updated: Implications for Luxembourg taxpayers

Today, the EU Council updated the EU list of non-cooperative tax jurisdictions. The update is an important step as it directly impacts the scope of application of three different Luxembourg tax measures: the measure denying the corporate income tax deduction of interest and royalty expenses due to entities located in non-cooperative tax jurisdictions (which will enter into force on 1 March 2021), the requirement to disclose transactions with entities located in non-cooperative jurisdictions (Circular of the Luxembourg tax authorities of 7 May 2018) and the mandatory disclosure rules applicable to certain cross-border arrangements (DAC6). We will present the EU list now in force and analyse how it will impact the three Luxembourg tax measures.