LUXEMBOURG Trends and Developments Contributed by: Peter Moons and Katerina Benioudaki, Loyens & Loeff
Entry into force The Law is already applicable to financial years starting on or after 22 June 2024. The public CbCR shall be published within 12 months of the closing of the financial year for which it is drawn up. For entities whose financial year follows the calendar year, ie, 1 January until 31 December, the reporting obligation only started with respect to the financial year 2025 and the public CbCR shall be published by 31 December 2026 at the latest. Master File and Local File Obligations and Advanced Pricing Agreements (APAs) On 28 March 2023, the Luxembourg govern - ment presented a bill of law as well as the relat - ed Grand-Ducal Regulation to reform certain tax administrative and procedural aspects, as well as TP documentation requirements. The draft Grand-Ducal Regulation on TP docu - mentation provides that there will be a local file and master file obligation for Luxembourg “con- stituent entities” as defined in the Luxembourg CbC law meeting certain thresholds. Both the local file and the master file shall always be avail - able to the LTA. Under the same legislative initiative, it was also proposed that the bilateral and multilateral APA procedure be formalised by introducing a fee ranging from EUR10,000 to EUR20,000. Although the master file and local file obligations were supposed to enter into force as of financial year 2024, the bill of law has still not been voted on. To date, the entire legislative proposal has faced much criticism, both from stakeholders and the Council of State. It remains to be seen whether the proposal will be adopted or whether it will undergo any amendments.
a report that is consistent with the public CBCR and: • it is made accessible to the public free of charge and in a machine-readable electronic reporting format: (a) on the website of the UPE; (b) in at least one of the official languages of the EU; (c) no later than 12 months after the balance sheet date of the financial year for which the public CbC report is drawn up; and • identifies the name and the registered office of a single subsidiary undertaking, or the name and the address of a single branch gov - erned by the law of a member state, which has published a public CbC report. Sanctions Failure to comply with the provisions of the Law may lead to fines of between EUR500 and EUR25,000. A distinction is drawn between the responsibility of the administrative, management and supervisory bodies of UPEs and standalone undertakings, which are required to prepare and publish the public CbCR in accordance with the Law, and the responsibility of the administrative, management and supervisory bodies of sub - sidiary undertakings and branches, which are expected simply to ensure, to the best of their knowledge and ability, that the public CbCR is prepared and published. Auditor’s statement Statutory auditor(s) or approved audit firm(s) auditing financial statements shall state in their audit report whether the taxpayer was required by the Law to publish a public CbCR for the financial year preceding the financial year being audited and whether the public CbCR was pre - pared and published.
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