The following two major tax events are expected to occur in December 2019:
- - The implementation of the Anti-Tax Avoidance Directive (EU) 2017/952 on hybrid mismatches ("ATAD 2") into Luxembourg law.
- As a reminder, the aim of ATAD 2 is to combat hybrid mismatch arrangements that exploit differences in the tax treatment of an entity or instrument under the laws of two or more tax jurisdictions in order to achieve double non-taxation.
- A draft law implementing ATAD 2 into
Luxembourg law was released back this summer and should be voted on
before the year's end. This means that most of the provisions
set out in ATAD 2 will be effective as of 1 January 2020.
- - The implementation of (EU) Directive 2018/822 on mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements ("DAC 6") into Luxembourg law.
- In a nutshell, DAC 6 obliges EU "intermediaries" (or taxpayers) to report cross-border arrangements that strongly present a risk of tax avoidance or abuse. The draft law implementing DAC 6 into Luxembourg law should be voted on the year's end.
- Reporting should start as soon as 1 July 2020 (and by 31 August 2020 at the latest) for reportable cross-border arrangements whose first implementation step occurs between 25 June 2018 and 1 July 2020.
- For reportable cross-border arrangements which triggering event occurs after 1 July 2020, the reporting shall be made within 30 days.
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.