On 8 January 2021, the Luxembourg tax authorities issued a new Circular n° 168bis/1 (the “Circular”) in order to provide guidance on the interpretation of the interest deduction limitation rules (IDLR) laid down in Article 168bis of the Luxembourg income tax law (LITL) (through which the Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices (ATAD 1) has been transposed into Luxembourg law).