Greetings,
Even if the health crisis is not yet behind us, social and economic life is restarting after the unprecedent lockdown we all encountered.
In this context, many measures have been introduced by the Luxembourg government to support families and businesses. One of the latest was passed by the Parliament on 22 July 2020. It aims to introduce a 6-month deadline extension for reporting under the mandatory disclosure regime applicable to tax intermediaries and a 3-month deadline extension for reporting under both the Common Reporting Standards (“CRS”) and the Foreign Account Tax Compliance Act (“FATCA”). We detail the new deadlines for reporting.
The Luxembourg legislation governing CRS and FATCA in Luxembourg was also amended -non-related to the COVID crisisas regards rules on exchange of information with effect as of 1 January 2021. We also describe these changes.
On 8 June 2020, a draft law to implement the Directive modifying the VAT rules on cross-border B2C sales was submitted to the parliament. The new rules will considerably modify the compliance obligations applicable to businesses involved in e-commerce. We consider the implications of these new rules.
At the level of the European Court of Justice (“CJEU”), the CJEU recently ruled on the Luxembourg tax consolidation regime and took a very positive decision for Luxembourg corporate taxpayers. We analyse this decision and its consequences for the Luxembourg taxpayers.
On 2 July 2020, the CJEU also took a decision in the so-called Blackrock case that could have a significant impact on the VAT position of fund managers. We analyse this decision and its potential impacts.
On the same date, Advocate General Juliane Kokott also gave an interesting opinion on questions referred by the Administrative Court of Luxembourg in relation to the Luxembourg rules on exchange of information upon request and their compatibility with EU law. We outline the reasoning of the Advocate General.
From a legal point of view, on 12 December 2019, a European Directive amending the rules as regards cross-border conversions, mergers and divisions was published. The Directive entered into force on 1 January 2020 and Member States are now required to bring their national law in line with the Directive by 31 January 2023. We describe the new rules introduced at European level.
We hope you enjoy reading our insights.
Stay safe.
The ATOZ Editorial Team