Newsletters & Newsflashes

Luxembourg government introduced to the Luxembourg Parliament ( Chambre des Députés) on 31 July 2023 a draft law to modernize the Luxembourg accounting legislation (the “ Draft Law”). The Draft Law intends to clarify and consolidate general accounting legislation, currently spread in several

On 18 July 2023, a draft law introducing the concept of secondary residence into Luxembourg tax law and suggesting that certain tax benefits applicable to principal residences be extended to secondary residences (the “ Draft Law”) has been submitted to the Luxembourg Parliament ( Chambre des Députés

Harmonized TP framework for the EU On 12 September 2023, the European Commission (“ EC”) introduced a proposal for a Directive on transfer pricing (the “ TP Directive”). This proposal follows the EC communication “Business Taxation for the 21st Century” on 18 May 2021 and has been issued together

Key takeaways On 7 September 2023, the European Court of Justice (“ ECJ”) issued its ruling in case C-453/22 where a VAT taxable person has been considered entitled to recover overpaid VAT from VAT authorities directly when the latter is not in a position to recover such overpaid VAT from its

In a judgment dated 11 July 2023 ( docket No. 48677Ca and 48684Ca), the Luxembourg Higher Administrative Court ( Cour administrative) (the “ Court”) referred several questions to the European Court of Justice (the “ ECJ”) for a preliminary ruling. The questions focus on the application of legal

One-stop shop for EU SMEs with EU permanent establishment(s) On 12 September 2023, the European Commission (“ EC”) proposed a Directive establishing a Head Office Tax system for micro, small and medium sized enterprises and amending Directive 2011/16/EU. The contemplated Head Office Tax (“ HOT”)

A harmonized taxable basis for the EU On 12 September 2023, the European Commission (“ EC”) proposed a Directive on Business in Europe: Framework for Income Taxation (“ BEFIT” or the “ Proposal”). The Proposal replaces to a certain extent the Common Corporate Tax Based and Consolidated Corporate Tax

On 13 July 2023, in its judgement rendered in case C-615/21, the European Court of Justice (the “ ECJ”) ruled that the interruption of the statutory limitation period in respect of the right of the tax authorities to assess VAT is in line with the principles of legal certainty and of effectiveness

Entry into force The income and capital double tax treaty between Cape Verde and Luxembourg was signed on 13 January 2022 (“ DTT”). On 21 June 2023, the Luxembourg Government Council approved the ratification of the DTT. The DTT will enter into force as from 1 January of the year following the

On 14 June 2023, the Luxembourg Lower Tribunal handed down a judgment regarding the tax treatment of the repurchase of a class of shares and the application of the general prohibition of abuse in tax law. In the case at hand, the tax administration challenged the tax treatment of the repurchase of

In a judgment dated 25 April 2023 (docket n° 47680C), the Luxembourg Higher Administrative Court ( Cour administrative ) (the “ Court”) handed down a decision concerning the deductibility of travel expenses incurred by a taxpayer when commuting from her home to her work place(s). The decision is of

On 19 July 2023, a draft law No. 8158 (the “ Draft Law”) aiming at implementing the Council Directive (EU) 2021/2101 of 24 November 2021 amending Directive 2013/34/EU on the communication by certain undertakings and branches of income tax information (the “ Directive”) has been submitted to the