Greetings,
Despite the unprecedented times we are facing, legal life goes on and the Luxembourg government keeps working either to execute its international commitments, or to help Luxembourg taxpayers and entities in facing the COVID-19 crisis.
On 21 March 2020, the DAC6 law was passed by the Luxembourg Parliament, implementing the EU Directive regarding the mandatory exchange of information in the field of taxation in relation to reportable cross-border arrangements. In this edition of ATOZ Insights, we present the new obligations of Luxembourg intermediaries in this area and introduce our IT solution, helping to ensure compliance and coordinate intermediaries, DAC6Connect.
On 4 March 2020, the Luxembourg tax authorities released the first Circular in relation to the various ATAD measures implemented in Luxembourg, dealing with CFC rules. The Luxembourg CFC rules were introduced as of 1 January 2019. Here we detail the guidance and examples provided in the CFC Circular.
On 30 March 2020, a draft law was presented to Parliament in order to amend the Luxembourg corporate income tax law so as to deny, in Luxembourg, the deduction of certain expenses directed to entities established in blacklisted jurisdictions. We explain the proposed new measure and its application.
On 20 February 2020, a draft law was presented to Parliament introducing some amendments to the Luxembourg legislation governing CRS and FATCA. The draft law aims to rectify some elements in respect of which the “Global Forum on Transparency and Exchange of Information for Tax Purposes” considered that the Luxembourg legislation was not compliant with the CRS norms. We explain these amendments and their consequences.
Over the past weeks, the Luxembourg Government has been taking measures to deal with the spread of the Coronavirus and guarantee the continuity of the Luxembourg economy. We detail the measures taken for Luxembourg taxpayers, the financial sector, Luxembourg corporate entities, and cross-border workers.
From a case law point of view, we analyse the opinion of the Advocate General of the CJEU on the BlackRock case, in which, the decision to be released by the CJEU may have a significant impact on the VAT position of Luxembourg fund managers. We also analyse the potential impact of the San Domenico Vetraria SpA case in which the CJEU confirmed that the reimbursement of costs in relation to an employee on secondment falls within the scope of VAT.
We hope you enjoy reading our insights.
The ATOZ Editorial Team