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On 13 June 2022, a Draft Bill (the “Bill”) implementing the Council Directive (EU) 2021/514 into domestic law was presented to the Luxembourg Parliament. It is the 7th installment of the so-called Directive on Administrative Cooperation in the field of taxation and is most commonly referred to as DAC 7. The Bill sets out numerous obligations to certain digital platform operators stipulating reporting requirements and setting out compliance standards. The proposed measures are to be applicable as from 1 January 2023.

On 7 June 2022, Luxembourg and the United Kingdom (’’the UK’’) signed a protocol in order to amend the existing double tax treaty between these jurisdictions. The new treaty introduces a reduction on the withholding tax rate on dividend payments and royalties, as well as the so-called ‘’land rich clause’’ relating to capital gains arising from the sale of shares holding, directly or indirectly, immovable property.

With this newsletter, Grant Thornton Luxembourg would like to draw your attention to the first amendments to the proposal for a directive relating to the prevention of the misuse of shell entities (the “Anti-Tax Avoidance Directive III” or ‘’ATAD III’’) published on 12 May 2022.

The new index comes into force on 1 April 2022, resulting in a 2.5% increase in wages, salaries and pensions.

Luxembourg Companies have to pay quarterly tax advances for Corporate Income Tax (CIT), Municipal Business Tax (MBT) and Net Wealth Tax (NWT) upon request from the Luxembourg tax authorities (LTA). Learn more

With this newsletter, Grant Thornton Luxembourg would like to draw your attention to the new ATAD III Directive, which should be implemented into the Member States’ national legislations by 30 June 2023 and come into effect by 1 January 2024.

In view of the uncertain evolution of the Covid-19 pandemic, the Luxembourg government has filed a new bill n°7916 aimed at extending the measures put in place by the law of September 23, 2020 until December 31, 2022.

Grant Thornton Luxembourg would like to point out some important guidelines and features regarding the Country-by-Country Reporting (“CbC Reporting”) laws in Luxembourg as the fiscal-year 2021 (“FY21”) is drawing to a close. This is important as the close of FY21 will bring with it the deadlines for various CbC Reporting obligations for many Luxembourg companies.

According to a public notice released on 1st October 2021 by the Luxembourg Trade and Companies Register (“RCS”), every individual already registered or to be registered with the RCS shall have to register a Luxembourg national identification number (the “LNIDN”) on the dedicated RCS portal.

In the context of the Covid-19 crisis, a taxpayer who, before December 31, 2020, has permanently waived all or part of his or her rent for the period from January 1, 2020 to December 31, 2021, may receive a tax rebate for the reduction granted.

The new index comes into force on 1 October 2021, resulting in a 2,5% increase of wages, salaries and pensions from this date. Learn more

The agreements on social and tax matters for french, belgian and german cross-border workers have been extended . Learn more

In the context of the Covid-19 crisis, a taxpayer who, before December 31, 2020, has permanently waived all or part of his or her rent for the period from January 1, 2020 to December 31, 2021, may receive a tax rebate for the reduction granted.

Luxembourg resident corporations and Luxembourg Permanent Establishments (PE) could apply for the reduction of the Net Wealth Tax (NWT), in particular by creating a 5-year unavailable NWT reserve in their annual accounts.

The Luxembourg companies have to prepare, each year, statutory annual accounts in accordance with Luxembourg legal and regulatory requirements.

Tax forms 2020 for capital companies (tax forms 500) are now available on the website of the Luxembourg Tax Authorities. The tax returns 2020 can now be filed electronically.