Newsletters & Newsflashes

In the course of the year 2017, an employee of Company A prepared and filed the 2015 tax return for Company B, a subsidiary of Company A. The employee however had no authority to do so. A few weeks after filing the tax return, the tax office issued a net wealth tax assessment on the basis of §100a

Due to the current state of crisis, the Government Council adopted the Grand-Ducal Regulation of 25 March 2020, which was published the same day and entered into force on 26 March 2020. Following this Grand-Ducal Regulation, the deadlines set for bringing proceedings before the Luxembourg judicial

On 25 March 2020, the Luxembourg Government Council approved a draft law which aims at introducing a specific non-deductibility rule for interest and royalties paid or due to an affiliated enterprise established in a jurisdiction which features on the EU list of non-cooperative jurisdictions for tax

On 21 March 2020, the Luxembourg Parliament adopted the law implementing Directive (EU) 2018/822 (“ DAC 6”) which introduces new reporting obligations on Luxembourg intermediaries that design, market or implement reportable cross-border tax arrangements. These reportable arrangements are identified

[Updated on 29/06/2020] In response to the COVID-19 crisis, on 17 March 2020, the Luxembourg Government has declared the “state of emergency” for Luxembourg and announced several tax measures for legal entities and individuals. The main objective of these measures is to alleviate the financing and

On 11 February 2020, the OECD released its first transfer pricing guidelines (“ TP Guidance”) on financial transactions (OECD release) specifying how multinational companies should price intercompany financial transactions. Such guidelines constitute a follow up on the Base Erosion Profit Shifting (

On 22 January 2020, the Luxembourg lower administrative court ( Tribunal administratif) handed down a judgment on the deductibility of French CSG/CRDS contributions ( Contribution Sociale Généralisée/ Contribution pour le Remboursement de la Dette Sociale) as special expenses related to employment

Budget Law 2020 On 19 December 2019, the Luxembourg Parliament voted to approve the 2020 Budget Law (the " Budget Law"), which introduces several tax related measures, namely: i. Limitation on validity of pre-2015 Advance Tax Agreements The most important measure introduced by the Budget Law is the

As of 1 January 2020, Luxembourg’s already comprehensive double tax treaty network has been expanded, by the entry into force of a new double tax treaty with Kosovo. The double tax treaty between Kosovo and Luxembourg foresees a nil withholding tax rate on dividends on qualifying shareholdings held

In a judgment handed down on 12 November 2019, the Luxembourg Lower Administrative Court ( Tribunal administratif) ruled in favour of the disallowance of interest expenses paid under bonds held by a family wealth management company, a société de gestion de patrimoine familial (" SPF"), on the

On 26 November 2019, the Luxembourg Higher Administrative Court ( Cour administrative) referred a preliminary question to the Constitutional Court ( Cour constitutionnelle) concerning the compatibility with the Constitution, and more specifically with the principle of the rule of law, of the change

In October 2019, the Organisation of Economic Cooperation and Development (" OECD") published a public consultation document on the so-called "Unified Approach" under Pillar I. Pillar I is concerned with the allocation of taxing rights between countries and seeks to undertake a review of the profit