Newsletters & Newsflashes

After a 1-year extension early last year, the specially reduced tax rate on capital gains realised by individual taxpayers on certain real estate assets has not been extended for the tax year 2019. As a reminder, this specific regime, initially introduced for the tax years 2016 and 2017 and aimed at

In a recent decision (No.40352 dated December 20 th 2018), the Lower Administrative Court (“ Tribunal administratif”) confirmed, as in previous decisions, that by application of the principle of legitimate expectations ( principe de confiance légitime), a confirmation given by the Luxembourg tax

In a ruling issued on November 8 th 2018 (case C-502/17), the Court of Justice of the European Union (the “ ECJ”) had to rule on the question whether a real estate property developer who did not register for VAT purposes, despite being under the obligation to do so, and who has failed to keep

The Draft Law No. 7278 introducing the VAT group regime in Luxembourg (please refer to our newsletter dated June 2018 for more details) was adopted without any substantial changes on August 6 th 2018 with retroactive effect as of July 31 st 2018. The concept of normal value ( valeur normale)

On December 18 th 2018, the Luxembourg Parliament ( Chambre des Députés) passed Draft Law No. 7318 which transposes into domestic law the Anti-Avoidance Tax Directive (“ ATAD”). The law was adopted without any substantial amendments to the draft version we previously covered (please refer to our

On November 15 th 2018, the Organisation for Economic Co-operation and Development (“ OECD”) published technical guidance for the application of the substance requirement to “low or no tax jurisdictions”. In a report dated 1998, the OECD had already taken the view that one of the most effective

On October 18 th 2018, the Court of Justice of the European Union (the “ ECJ”) handed down an important ruling (case C-153/17), providing new guidance regarding the deduction of input VAT on general overhead costs in hire purchase transactions. The dispute at hand involved Volkswagen Financial

The 2018 legislative elections having delivered their results, the previous coalition formed by liberals (DP), socialists (LSAP) as well as ecologists (Déi Gréng) has been re-elected for another 5-year term. In the course of the coalition formation, a new coalition agreement ( projet de gouvernement

In a ruling issued on November 8 th 2018 (C-502/17), the ECJ clarified the conditions for input VAT deduction on expenses incurred in the context of share disposal transactions. The plaintiff, C&D Foods Acquisition ApS (the “ Parent”), a Danish company, was the parent of Arovit Holding A/S, which

With draft law No. 7390 (the “ Draft Law”), which was submitted to the Luxembourg Parliament on December 4 th 2018, Luxembourg aims at further expanding its already comprehensive double tax treaty network. If adopted, the Draft Law will ratify a new double tax treaty, replace an existing one and

By a decision of November 29 th 2018, the Luxembourg Higher Administrative Court ( Cour administrative) referred three questions to the European Court of Justice of (" ECJ") for a preliminary ruling concerning the former tax consolidation regime applicable in Luxembourg until 2015 and which provided

On December 13 th 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