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The key amendments, that mostly concerns transfer pricing aspects, are the modifications made to the General Law on Taxation of the 22 May 1931 (“Abgabenordnung”) in the following paragraphs: §29c, §96a, §171 ,§165c & §249. These changes have been made with a view to simplifying and modernising the procedures applicable to taxpayers.

Understanding Taiwan’s Double Tax Agreements - A Foreign Entity invested in Taiwan may apply for withholding tax reclamation or tax relief if it is domiciled in a country that has a Double Tax Agreement with Taiwan.

On 14th May 2024, the EU Council adopted the EU Directive on Faster and Safer Relief of Excess Withholding Taxes (“FASTER”).

The Grand-Ducal Decree of 18 April 2024 modified the lists of Participating Jurisdictions and Reporting Jurisdictions for the CRS reporting year 2023.

Following the transposition into Luxembourg national law of the EU Directive 2022/2523 (the "Pillar 2 Law"), multinational enterprise (MNE) groups and significant large domestic groups are required to pay a minimum tax level of 15%. The Pillar 2 law came into effect for fiscal years starting on or after 31 December 2023.

Recent decisions rendered by the Court of Justice of the European Union (“CJEU”) seem to have put an end to investigations of the European Commission (“EC”) into tax measures of the Member States based on the state aid rules. In particular, certain tax rulings granted by the Luxembourg tax authority (“LTA”) to Fiat, Engie and Amazon groups have been characterised by the EC in the past as conveying illegal selective tax advantages. Ultimately, CJEU decisions rendered in these cases found the tax rulings not to constitute unlawful state aid.

On 20 December 2023, draft law no. 8292 (“Draft Law”), transposing the EU Council Directive 2022/2523 of 14 December 2022 (“Pillar Two Directive”) into Luxembourg national law, was adopted by the Luxembourg Parliament (the “Law”). The Law aims to ensure that multinational enterprise (“MNE”) groups and significant large domestic groups pay a minimum level of tax of 15%. It incorporates amendments proposed by the Luxembourg Government in November 2023 in order to be aligned with administrative guidance issued by the OECD.

On 4 August 2023, the Luxembourg Government introduced to the Luxembourg Parliament the draft law no. 8292 (the "Draft Law"), aimed at implementing the provisions of the European Union (“EU”) Council Directive 2022/2523 of 14 December 2022 (the “EU Pillar Two Directive” or the “Directive”). In line with the Directive, and in order to ensure that large multinational enterprise (“MNE”) groups and significant large domestic groups pay a minimum level of tax, the Draft Law introduces three new taxes into Luxembourg national law.

On 13 July 2023, the Luxembourg Government presented the draft law no. 8276 to the Luxembourg Parliament. The Draft Law proposes changes to the current investment tax credit regime by increasing the rates of the global ITC and introducing a new ITC for investments and expenses related to the digital transformation and the ecological and energy transition. The proposed measures are planned to apply as from tax year 2024.

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.

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 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.

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.

Lockdown has disrupted transfer pricing (TP) within multinational enterprises (MNEs). Even as restrictions are gradually eased, there continues to be considerable uncertainty over the risks, circumstances and comparables used to determine arm’s length transfer prices. Contact Jean-Nicolas Bourtembourg, Partner, Grant Thornton Luxembourg.