Yesterday, the draft law which introduces a measure denying under certain conditions the corporate income tax deduction of interest and royalty expenses due to entities located in non-cooperative tax jurisdictions was passed by the Luxembourg Parliament. Since the legislative procedure took longer than initially expected and the draft law could not be passed prior to the end of 2020, the legislator decided to postpone the entry into force of the new measure from 1 January 2021 to 1 March 2021. The postponement of the entry into force of the measure means that its scope of application may evolve in the coming weeks following the update of the EU list of noncooperative jurisdictions which is expected to take place next month.