LUXEMBOURG Law and Practice Contributed by: Romain Tiffon and Marie Bentley, ATOZ Tax Advisers
Country-by-Country Reporting (OECD Action 13) Luxembourg has implemented the OECD BEPS CbCR standard into domestic law via the law of 23 Decem - ber 2016. • Applies to multinational groups with EUR750 mil - lion+ consolidated turnover. • Every Luxembourg constituent entity must sub - mit an annual CbCR notification identifying which entity in the group files the report. • If the Luxembourg entity is the Ultimate Parent Entity or designated reporting entity, it must file the full CbC report with the Luxembourg tax authori - ties. • The report must disclose aggregated financial and activity-based data per jurisdiction: revenues, profits, taxes paid, number of employees, tangible assets, etc. These reports are not public and are exchanged between tax authorities under automatic exchange of information mechanisms. EU Public Country-by-Country Reporting (Public CbCR) Luxembourg enacted the EU Public CbCR Directive in August 2023. This is a major new transparency layer distinct from standard OECD CbCR and applicable from 2024. • Applies, with some exclusions, to multinational groups with a total consolidated revenue of EUR750 million to report if their ultimate parent company is located in the EU or if the ultimate par - ent company is not in the EU but has EU subsidiar - ies or branches. • The public report must disclose revenues, profits or losses before tax, corporate income tax paid and accrued, employees, accumulated earnings, busi - ness activities, by jurisdiction. • The publication must be on the Luxembourg Trade and Companies Register and the undertaking’s corporate website (if not exempt), with mandatory accessibility for at least five years. • Luxembourg allows up to five years’ temporary deferral of commercially sensitive information.
DAC6 – Mandatory Disclosure of Cross‑Border Arrangements Luxembourg implemented DAC6, which requires intermediaries (or, in some cases, taxpayers) to report certain cross-border arrangements that present cer - tain indicators of potential tax avoidance (hallmarks). DAC6 applies to both: • intermediaries (tax advisers, lawyers, accountants, banks, service providers); and • taxpayers (only if no intermediary is involved or if intermediaries are exempt through legal profes - sional privilege). DAC7 – Reporting for Digital Platform Operators Luxembourg transposed DAC7, imposing reporting obligations on digital platform operators facilitating: • the sale of goods; • rental of immovable property; • rental of means of transport; and • personal services. Operators must identify and report sellers’ income and activity details. This expands transparency beyond corporate taxation into the platform economy. DAC8 – Crypto-Asset Reporting Framework (CARF) Luxembourg has also implemented the DAC8 rules, which incorporate the OECD Crypto-Asset Reporting Framework (CARF). This introduces: • obligations for crypto-asset service providers to identify users; and • obligations to report crypto transactions, gains and transfers to tax authorities across the EU. DAC8 extends Luxembourg’s transparency to the fast-growing digital asset sector. 9.12 Digital Economy Businesses Luxembourg has not introduced unilateral digital spe -
cific tax rules. There is currently: • no digital services tax (DST); and
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