Luxembourg: CRS implementing legislation moves forward
The Luxembourg Parliament unanimously passed legislation that would transpose into domestic law an EU directive concerning the automatic exchange of information in the field of taxation (a directive known as “DAC 2”).
The DAC 2 provides that EU Member States are to require financial institutions to implement reporting and due diligence rules that are consistent with the rules set out in the common reporting standard (CRS) as developed by the OECD.
The Luxembourg Parliament vote on the DAC 2 was during the session of 9 December 2015, with the first constitutional vote being accompanied by a motion to dispense with a second vote addressed to the Conseil d’Etat.
What’s next?
Once the CRS law in Luxembourg is enacted, the next steps would be for the tax authorities (Administration des Contributions Directes) to issue guidelines for Luxembourg financial institutions to follow concerning implementation of the CRS regime in Luxembourg. Luxembourg has made a commitment to implement the automatic exchange on financial account information as from year 2017 (i.e., for the period relating to 2016).
Read a December 2015 report [PDF 131 KB] prepared by the KPMG member firm in Luxembourg: DAC 2 – first vote carried out
