December has rolled around... thankfully this means sweets and
treats and some time off, but it also means that there are a couple
of VAT items to make sure you're prepared for—because the
year-end is just around the corner too.
Tune in every week until Christmas as we keep you updated on
important tax information to know before 2017. And follow us on
Twitter at @KPMGLuxembourg for
daily tax updates! (Hashtags: #KPMGTax and
First up is VAT. Here are three things you should know:
Last call for 2015 VAT returns
The legal deadline for your annual 2015 VAT return was 1 May
2016, but the Luxembourg VAT authorities grant an administrative
tolerance of eight months, meaning that you have until 2 January
2017. If you thought you'd missed your chance, then you
Change is in the air
This year marks the last time that you had the choice between
eTVA and eCDF for your VAT returns—as of 1 January 2017, you
must use the eCDF platform (even if you're filing your 2015
returns). You must also use this platform to file your EC Sales
Lists from this date onwards. This electronic platform has been set
up by the Centre des technologies de l'information de
l'Etat (CTIE). You will be able to still use your eTVA
Luxtrust certificate to access the eCDF platform.
If you're unsure about transitioning from eTVA to eCDF then
give us a shout.
New obligations for directors in Luxembourg
Attention independent and Luxembourg-established directors: as
of 1 January 2017, you'll be considered taxable persons for VAT
purposes. You will therefore have to register for VAT purposes,
file VAT returns (how often will depend on your turnover), and
issue proper invoices, applying a 17% VAT rate on the services
you render to the entities you manage.
A few stipulations to remember: if you fulfill certain
conditions given in Luxembourg's VAT law then you might benefit
from the franchise regime; if you do not act independently (i.e. if
you act on behalf of your employer), you will not be considered a
taxable person for VAT purposes. Especially in the investment fund
management industry, these rules can complicate the answers to
questions like whether you are subject to VAT tax, and if so then
to what extent.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The SuperReturn International series consists of 15 annual international private equity & venture capital events held in Europe, Asia, Africa, Middle East and the US. This happens to be the European event for the year. Spread across five days, starting from 27 February, the largest private equity event worldwide will take place in Berlin this year.
Some of the main subjects being discussed at this year’s conference are; The Geopolitical and Economical happenings of the last 12 months, Innovation Disruption & Tech Expertise and many more. As previously eluded to, there will be over 400 presenters, all bringing their own perspective and stance on specific topics to the table. Companies such as Google, Visa, Bloomberg and many more will all be represented throughout the five days.
KPMG Associate Partner, Nic Müller, will be speaking on 28 February at 3pm: “Why invest in the mid-market today”.
Given the societal challenges and environmental issues we currently face, the circular economy concept has rapidly been gaining in importance. This is why the Luxembourg government is pressing ahead in setting up the framework for the third industrial revolution, in which a circular economy is a key pillar.
The International Accounting Standards Board’s (IASB) insurance contracts standard, IFRS 17, is expected to significantly affect data requirements and the systems and processes used for data collection, actuarial projections, and on calculating and accruing interest.
In discussion with insurers around the world, we found that most expect to face challenges accessing and handling data of the right quality and granularity under the new standard. And many see significant effort associated with capturing, storing and analyzing this information given historical data quality and the use of legacy systems.
In the third of our webcast series - Impacts of IFRS 17 on data, systems and processes - we will share practical examples of how the forthcoming standard may impact an insurer’s current systems architecture. In addition, we will explore the data that will be required and how the standard will influence new estimates, computations and processing. We will also share lessons that we have learned from helping insurers through Solvency ll and the importance of developing a data management policy early on.
On 14 July 2016, the House of Representatives approved changes to the Immovable Property Tax Law (the "Law").
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