Luxembourg parliament adopts bills of law on tax reform and country-by-country reporting

Tax Reform
On 14 December 2016, Luxembourg parliament adopted the bill of law on tax reform including the gradual corporate income tax reduction of 3 percentage points.

Our tax newsletter of 29 July 2016 reports on the most relevant measures. All of these measures were adopted without modification vis-à-vis the original bill of law. The tax reform measures are generally applicable as of the tax year 2017, with some exceptions. 

Country-by-Country reporting
Further, on 13 December 2016, Luxembourg parliament has adopted the bill of law on country-by-country reporting, implementing the European Directive 2016/881/EU. Luxembourg parent companies of multinational groups having a turnover of at least EUR 750 million must first notify that fact and subsequently file a country-by-country report to the Luxembourg tax authorities. The same goes for Luxembourg entities of such groups of which Luxembourg doesn’t receive a country-by-country report from another country. Failure to comply may be punished with fines up to EUR 250,000. The law will be published in the Official Gazette of the Grand Duchy of Luxembourg and enter into force three days after its publication therein. We expect that the law will be in force before
1 January 2017.

Click here for more information on Country-by-Country reporting

Compliments by Loyens & Loeff  – a member of the EACCNY