On December 13th 2018, the OECD published the 2017 Peer Review Reports on the Exchange of Information on Tax Rulings. These reports reflect the outcome of the second peer review of the Implementation of Action 5 of the BEPS Project and cover the tax year 2017.
The reports review the implementation of the BEPS Action 5 minimum standard which aims to provide tax administrations with timely information on rulings and covers 92 jurisdictions. Overall, the OECD notes that, as of December 21st 2017, 16,000 rulings had been issued by the jurisdictions under review and 21,000 exchanges had taken place between tax administrations. In addition, all 92 reviewed jurisdictions will or have already undertaken steps to implement the necessary legal framework for spontaneous exchange of information on rulings for the year in review.
As regards Luxembourg, the report notes that Luxembourg granted 1,922 so-called past rulings (i.e. rulings granted between January 1st 2014 and April 1st 2016 or before if they were still in effect as at January 1st 2014), 73 rulings for the period April 1st 2016 to December 31st 2016 and 18 rulings for the year 2017. The reports conclude that Luxembourg satisfies, in all aspects, the criteria for information gathering, exchange of information and in matters related to intellectual property regimes. The report notes the efforts made by Luxembourg to meet the last peer review’s recommendations such as improving its information gathering on past rulings. The OECD makes no recommendations for this year’s review and adds that the information exchanged by Luxembourg is complete, in a correct format and almost always communicated in a timely manner.