Newsletters & Newsflashes

On 11 March 2025, the VAT in the Digital Age (ViDA) package has been finally adopted by the Council of the European Union and the measures will be turned out progressively until January 2035. The purpose of this package is to modernize and improve the VAT system in the EU to better align with the

On 25 March 2025, the Luxembourg accounting board ( Commission des normes comptables, “ CNC”) issued a third Q&A with respect to Pillar 2 focusing on relevant accounting information to be provided in standalone and consolidated financial statements before and as of the transition year. Background

On 11 March 2025, the Economic and Financial Affairs Council (“ ECOFIN”) reached a political agreement on the amendment of Directive 2011/16/EU on administrative cooperation in the field of taxation (“ DAC”) to ease Pillar 2 filing obligations and implement the exchange for Pillar 2 information

On 3 March 2025, the government issued a draft Grand-Ducal Decree amending the existing Grand Ducal-Decree of 13 February 2018 implementing Article 4, paragraph 2, of the law of 23 December 2016 on Country-by-Country Reporting (“ CbCR”), the purpose of which is to update the list of ‘Reportable

On 19 January 2024, the Grand Duchy of Luxembourg and the Republic of Colombia have signed a convention for the elimination of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance (the “DTT”). For more information, please refer to our

On 29 January 2025, the Luxembourg Tax Authorities (“ LTA”) issued a new Circular LITL No. 164/1 (the “ New Circular”), replacing Circular LIR No. 164/1 dated 23 March 1998 (the “ Previous Circular”) on the interest rates related to current account of associates or shareholders of entities subject

Significant changes have taken place in the Luxembourg tax landscape in the course of the year 2024, as demonstrated by the intense legislative activity until the last days of 2024, with several measures taking effect as from fiscal year 2025, as summarised below. Corporate taxpayers Corporate

On 4 October 2024, the European Court of Justice (the “ ECJ”) (Case C-585/22) ruled that Article 49 of the Treaty on the Functioning of the European Union (the “ TFEU”), which guarantees the freedom of establishment, does not preclude national legislation from fully denying the deduction of interest

On 11 December 2024, the Luxembourg Indirect Tax Authorities ( Administration de l’enregistrement, des domaines et de la TVA) issued a new circular No. 781-2 on the VAT treatment of director’s fees following the decision of the European Court of Justice (the “ ECJ”) in case C-288/22, TP v

On 16 October 2024, the Lower Administrative Court ( Tribunal administratif ) annulled a decision by the Director of the Luxembourg Tax Authorities (“ LTA”) ( Administration des contributions directes) to uphold and increase the amount of a fine imposed by the Tax Office on a tax consultancy company

Introduction On 5 November 2024, the Council adopted several measures aimed at conforming the value added tax (“ VAT”) rules to the digital age. The ViDA package will bring major changes to the VAT system. The ViDA package is based on three main pillars: Pillar 1: digital VAT reporting This first

On 24 December 2024, the Luxembourg Direct Tax Authorities issued the new circular L.G.-A No. 61 replacing the previous circular dated 8 December 2017 ( please see our previous newsletter dated 8 February 2008 for more details) which outlines the procedure for applying for tax residency certificates