Yesterday, the Luxembourg Government adopted a draft law amending the Luxembourg income tax law so as to deny, in Luxembourg, the deduction of interest and royalty expenses directed to entities or persons located in non-cooperative jurisdictions. This measure follows the recommendations made by the EU Council and happens a few weeks after the Cayman Islands were added to the EU blacklist. Since the draft law has not yet been published, the details of the measure and its date of application remain to be confirmed.