Luxembourg – Update of participating and reporting juridictions under the common reporting standard (« CRS »)

The Grand-Ducal Decree removes certain jurisdictions from the list of Participating Jurisdictions, notably where the exchange relationship has not been activated as per the notification procedure outlined in the OECD Multilateral Competent Authority Agreement regarding automatic exchange of information on financial accounts. In addition, certain jurisdictions were added to the list of Reportable Jurisdictions.

 

In Detail

The following Participating Jurisdictions were removed:

• Liberia
• Morocco
• Moldavia
• Montenegro
• Uganda

This impacts the due diligence obligations regarding the application of the “deemed Passive NFE” concept under the CRS Law.

The following jurisdictions have been added to the List of Reportable Jurisdictions:

• Georgia
• Ukraine

For the calendar year 2023 CRS reporting (due on 30 June 2024 at the latest), reportable persons tax resident in these countries will consequently need to be reported (and, where reportable individuals/controlling persons are concerned, be notified sufficiently in advance of the reporting through a specific notification).

 

Our observations

Although Russia currently is on the EU list of non-cooperative jurisdictions for tax purposes, it is still on the list of CRS Reportable Jurisdictions. The Luxembourg tax authorities will not exchange the CRS data received regarding reportable persons tax resident in Russia; at least not for the time being.  The reportable data will indeed be kept and may be exchanged by the authorities in the future, should Russia be deleted from the list of non-cooperative jurisdictions.

Following the modifications of the list of CRS Participating and Reportable Jurisdictions, Reporting FI’s need to quickly act to take into account the changes for the calendar year 2023 reporting (or undertake corrective action should reporting already have taken place for 2023).

 

For any questions, please feel free to be in touch with your usual Grant Thornton contacts, or our specialist team mentioned hereafter: