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Grant Thornton Luxembourg welcomes you to the October Data Protection Newsletter! Following the launch of our first issue in September, we continue our mission to provide you with a clear and practical overview of the latest developments in data protection, AI, and tech regulation, helping you stay informed and compliant in this ever-changing digital landscape. Whether you are a business navigating your compliance obligations or simply a citizen wanting to make your online life safer and more informed, this newsletter is for you. For more tailored advice or support, do not hesitate to reach out to our Data Protection Team using the details provided at the bottom of this page. We’ll be delighted to arrange an introductory meeting tailored to your needs.

2024 Income tax returns: The forms are now online.

Grant Thornton Luxembourg welcomes you to the first edition of its Data Protection Newsletter! Each month, we will bring you a clear and accessible overview of key developments in data protection, AI, and tech regulation helping you stay ahead in an ever-evolving digital landscape. Whether you are a business navigating your compliance obligations or simply a citizen wanting to make your online life safer and more informed, this newsletter is for you. For more tailored advice or support, do not hesitate to reach out to our Data Protection Team.

As part of the drive to enhance payment security and in order to meet European regulatory requirements, banks will implement the Beneficiary Verification Service (VoP) starting on October 9 for all euro payments made within the SEPA area, including those processed via MULTILINE.

Following the legislative elections in October 2023, the Luxembourg government unveiled its 2023–2028 coalition agreement, outlining initiatives to enhance the country’s economic competitiveness. The agreement places particular emphasis on the financial sector, with key tax reforms designed to foster sustainable growth and reinforce Luxembourg’s status as a leading international financial center over the next five years.

The tax unity regime allows a group of Luxembourg companies to be taxed as a single taxpayer on a consolidated basis. This regime enables the offsetting of profits and losses among group members, potentially reducing the group’s overall tax burden.

The CSSF has recently reiterated a key message for all supervised entities: if a major ICT-related incident occurs, it must be reported—promptly and without exception.

The Grand-Ducal Decree of 6 June 2025 modified the lists of Participating Jurisdictions and Reportable Jurisdictions for the CRS reporting year 2024. The Grand-Ducal Decree added the following jurisdictions to the List of Participating Jurisdictions. In addition, certain jurisdictions were added to the list of Reportable Jurisdictions.

As recently mentioned in the news, the first VAT inspections on leasings are beginning to take place, especially for German cross-border workers. We remind you of the importance of analysing your situation: - Are you affected by the QM ruling? - Are you compliant from a salary and accounting perspective?

The Commission de Surveillance du Secteur Financier (CSSF) has issued two Circulars — CSSF 25/893 and CSSF 25/892 — that reinforce Luxembourg’s commitment to implementing the Digital Operational Resilience Act (DORA). These circulars provide a comprehensive regulatory framework for ICT-related incident classification and reporting, as well as for estimating the financial impact of such incidents. Branches in Luxembourg of financial entities whose head office is based in another EU Member State (EU branches) are expected to report major ICT-related incidents, significant cyber threats and their estimations to the competent authority of their home Member State under DORA. As such, they are excluded from the scope of these circulars.

Following the monthly meeting of the Index Commission, the STATEC has confirmed the triggering of a new salary indexation as of 1 May 2025. The applicable index increases to 968,04 points (instead of 944,43 points), resulting in a 2.5% increase in wages, salaries and pensions.

Luxembourg companies that prepare their annual accounts in a foreign currency may be exposed to foreign exchange (FX) risk for tax purposes. Such risk could be mitigated by submitting a timely request to report the taxable income in this foreign currency.

Risking double taxation or losing your social security system? Never! How to avoid it: Closely monitor your employees' social security and tax thresholds.

Luxembourg resident capital companies distributing dividends to their shareholder(s) must file a withholding tax (WHT) return within eight days from the date the dividend becomes available (even if no WHT is due).

Luxembourg resident corporations and Permanent Establishments (PEs) can reduce their 2025 Net Wealth Tax (NWT) by setting up a 5-year unavailable NWT reserve in their 2025 annual accounts.

Following the Court of Justice of European Union (CJEU) decision in case C-288/22 and the subsequent judgment of the Luxembourg District Court on 22 November 2024, the Luxembourg VAT authorities (AED) issued Circular N° 781-2 on 11 December 2024.