Luxembourg has passed a new law implementing non-public country-by-country reporting.
As a result of this legislation, constituent Luxembourg entities must notify the Luxembourg tax authorities as to whether they are an ultimate parent entity, surrogate parent entity or constituent entity. If the constituent entity is not the reporting entity that will be filing the group's 2016 country-by-country report, they must provide the identity and tax residence of the actual reporting entity to the tax authorities. Multinational enterprise groups (MNE groups) with a fiscal year-end in 2016 must provide this notification by March 31, 2017 (instead of December 31, which was originally the deadline).
Luxembourg's new law requires the first country-by-country reports to be filed for 2016 fiscal years. Country-by-country reporting applies to MNE groups with a total consolidated revenue that exceeds $750 million during the prior fiscal year. Luxembourg MNE groups must file a country-by-country report within 12 months of the last day of the reporting fiscal year of the group (e.g., December 31, 2017 if the 2016 accounting year of the MNE group ends on December 31, 2016).
In December 2016, Luxembourg confirmed that it would not support the EU Commission's initiative for public country-by-country reporting until there is consensus at the OECD level.
This legislation on non-public country-by-country reporting transposes EU Directive 2016/881 from May 25, 2016 into domestic law. It follows Action 13 the OECD's BEPS project, which focuses on tax transparency.
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Information is current to January 24, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500