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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.

In the case C-288/19, the Court of Justice of the European Union recently decided on the VAT treatment of company cars, which are put at the disposal of the company’s employees for private use. Read more

This digital transfer pricing guide will help provide you with a general overview of the transfer pricing landscape and who to contact in Luxembourg for more detailed insight.

Payroll Newsflash: read more about the news in tax matters in the context of the COVID-19 crisis

On 14 October 2020, the Luxembourg Ministry of Finance presented the 2021 Draft Budget Law (n°7666) (“Draft Law”) to the Chamber of Deputies, setting out a number of tax measures. It was announced that, due to the COVID-19 pandemic, the main focus will be put on containing the effects of the crisis. Therefore, instead of increasing taxes and conducting a general tax reform, a number of amendments which aim at restoring tax justice and improving economic sustainability were addressed.

Payroll Newsflash: read more about the last changes in legislation in the context of the COVID-19 crisis