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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ICT Spring is a global technology conference that welcomes various international professionals from the technology space. It is a two-day yearly event which is held in Luxembourg City, “at the heart of Europe, and offers the participants a unique opportunity to deepen their digital knowledge, capture the value of the fast-growing FinTech industry, and explore the impact of space technologies on terrestrial businesses, through exhibitions and demonstrations of the latest tech trends and innovations. ICT Spring is also the perfect place to network with peers and future business partners”.
ICT Spring is a global technology conference that welcomes various international professionals from the technology space. It is a two-day yearly event which is held in Luxembourg City, “at the heart of Europe, and offers the participants a unique opportunity to deepen their digital knowledge, capture the value of the fast-growing FinTech industry, and explore the impact of space technologies on terrestrial businesses, through exhibitions and demonstrations of the latest tech trends and innovations.”
This May, ALFI Funds are hosting a roadshow in New York. KPMG are very happy to be sponsoring this event, which will feature Giuliano Bidoli, Partner in Tax, alongside Chrystelle Veeckmans, Partner in Audit. Giuliano will speak about the latest tax developments at the conference.
The Common Reporting Standard (CRS) is the standard for the automatic exchange of financial account information produced by the OECD, which provides for exchange of client due diligence (CDD) information between various jurisdictions.
The Department for International Tax Cooperation ("DITC") has released Version 2.0 of the Common Reporting Standard ("CRS") Guidance Notes and clarified certain areas:
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