Communication from the Luxembourg tax authorities on the notification procedure
The law on non-public country-by-country (“CbC”) reporting transposing the EU Directive 2016/881 of 25 May 2016 into domestic law (the “Law”) was published on 27 December 2016 in the official gazette. Following this publication, the Luxembourg tax authorities issued a newsletter summarizing the main provisions of the new Law, and providing clarification on the notification procedure in an FAQ section. The newsletter further includes details on the procedure related to the online reporting tool for notification, which is now available, as well as a section “procedure for country-by-country report” still to be completed.
This Tax Alert follows our Tax Alert of 20 December 2016, which provides more details on the Law.
Procedure for notifications
A Constituent Entity must notify the Luxembourg Direct Tax Authorities (Administration des Contributions Directes) if it is the ultimate parent entity, surrogate parent entity or the constituent entity designated under the secondary mechanism. If it is not a reporting entity, it must notify the Luxembourg Direct Tax Authorities of the identity and tax residence of the reporting entity.
According to the FAQ, notifications about the reporting entity for MNE groups having a fiscal year-end in 2016 (and a fiscal exercise starting as of 1st January 2016) must be provided on an exceptional basis no later than 31 March 2017 (instead of 31 December 2016 as initially foreseen in the Law).
The notification must be done online via 'guichet.lu'. The online ‘form’ is only available in English and is only accessible by a person having a Luxembourg identity card with an activated certificate or using a LuxTrust device (i.e. a smartcart, a signing-stick or a token). KPMG has the experience to file administrative documents via 'guichet.lu' and we would be pleased to put this experience at your service.
Procedure for filing the CbC report – Information to come
The CbC report must be filed with the Luxembourg Direct Tax Authorities within 12 months of the last day of the reporting fiscal year of the group: (i) by 31 December 2017, if the 2016 accounting year of the MNE group ends on 31 December 2016 or (ii) if the accounting period deviates from the calendar year, by any other date after 31 December 2017.
The newsletter does not include any details on the procedure for this filing yet. We will keep you informed as soon as the Luxembourg tax authorities provide additional communication in this respect.
We wish you all the best for 2017.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation.