The introduction of the new European Union (EU) Mandatory Disclosure rules (DAC 6) aims to implement procedural compliance requirements for intermediaries and taxpayers to disclose 'potentially aggressive tax planning arrangements' by intermediaries or taxpayers to the relevant tax authority. Subsequently, all tax authorities in the EU will then exchange received reportable disclosures amongst one another on a quarterly basis.

In Luxembourg, it becomes increasingly important that Luxembourg intermediaries and Luxembourg taxpayers understand how they may be affected and put in place procedures to identify whether their cross-border transactions fall within one of the hallmarks.

Following provides an overview of the legislation in Luxembourg.

Country Luxembourg
Final legislation Yes
Date legislation in effect 01-Jul-20
Deferral option applied Yes
Deferral period 6 months
Scope Direct and certain indirect taxes. Taxes such as VAT, customs duties, excise duties, compulsory social security contributions, fees for certificates and other documents issued by public authorities and dues of contractual nature, such as consideration for public utilities, are excluded from the scope.
Reporting format Electronic / XML file, web-based form
Reporting language English
Annual Reporting Obligation for Taxpayer Yes
Fines One-off fee of max EUR 250,000
Legal Professional Privilege applicable? Law firms, auditors, accountants
Key contact

At Grant Thornton Luxembourg, our dedicated team of professionals can assist you in designing and implementing procedures to identify potential exposures you have face as well as in meeting your future reporting obligations.

For a detailed discussion, please reach out to Jean-Nicolas Bourtembourg.