Luxembourg Tax Administration publishes FAQ on Pillar Two transition rules regarding deferred tax assets and liabilities

On 25 March 2024, the Luxembourg Tax Administration published an FAQ aiming to clarify the application of the law of 22 December 2023 transposing the Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Pillar Two).

In this FAQ, the Luxembourg Tax Administration provides welcomed clarifications addressing the transition rules regarding the tax treatment of deferred tax assets and liabilities. This FAQ will further be completed as soon as new information becomes available.

Our International & Corporate Tax Partners, Antoine Dupuis and Andreas Medler, share the full details in this Alert.