Latest Newsletters & Newsflashes
Jan 01, 2019ECJ clarification of conditions for input VAT deduction in share disposals
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
Jan 01, 2019Luxembourg government announces tax policy for the coming term (2018-2023)
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
Jan 01, 2019Eba guidelines on reporting obligations under the PSD 2 in Luxembourg
The CSSF has adopted on December 17 th 2018 the guidelines of the European Banking Authority on the notification of major operational or security incidents (EBA/GL/2017/10) (the “ EBA Guidelines”). CSSF Circular 18/704 (the “ CSSF Circular”) adopting the EBA Guidelines (attached as its Annex 1) is
Jan 01, 2019TAX Treaty Update
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
Dec 31, 2018NEWSFLASH | Reminder: supplementary pension schemes
The Chamber of Deputies of the Grand-Duchy of Luxembourg adopted on 1 August 2018 a law (hereinafter “ the Law”) modifying the law of 8 June 1999 on supplementary pension schemes. The Law aims at implementing a European Directive of 16 April 2014 on supplementary pension rights [1] (hereinafter “
Dec 31, 2018Luxembourg fiscal unity regime | Request for preliminary ruling from ECJ
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
Dec 28, 2018NEWSFLASH | Reminder: improvement of the employee’s situation in the event of a long-term incapacity
The Chamber of Deputies of the Grand-Duchy of Luxembourg adopted on 10 August, 2018 the law on the maintenance of the employment contract and the gradual return to work in the event of a long-term incapacity (“ the Law”). The modifications hereunder detailed will enter into force on 1 January, 2019
Dec 28, 2018OECD publishes Peer Reviews on the exchange of Tax Rulings
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
Dec 28, 2018ECJ confirms right to deduct input “VAT” following a failed takeover bid
On October 17 th 2018, the Court of Justice of the European Union (the “ ECJ”) handed down a ruling (C-249/17) confirming the right to deduct, in full, input VAT paid on expenditure incurred in the context of a takeover bid, provided that the exclusive reason for that expenditure was to be found in
Dec 05, 2018BREXIT | Consequences of Brexit in the Sphere of International Data Transfers
The National Commission for Data Protection (“ Commission nationale pour la protection des données”, or CNPD) recently published a report on the consequences of the UK leaving the EU (“ Brexit”) in the sphere of international data transfers. This report is intended to guide Luxembourg companies
Oct 08, 2018BSP Newsletter | October 2018
This newsletter is intended as a general discussion of the following topics: Capital Markets, Corporate, Employment, Fintech, Investment Funds and Tax. If you would like to know more about the topics covered in this newsletter or our services please contact us. CAPITAL MARKETS Amendment of the Law
Oct 05, 2018Distinction Between Rental and Commercial Income under Luxembourg Tax Law
In a recent decision (No.39731 dated July 10 th 2018), the Lower Administrative Court (“ Tribunal administratif”), once again confirmed the principle that each tax year should be assessed independently. In the case at hand, an SCI (“ Société Civile Immobilière”), a type of tax transparent entity
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