Luxembourg: Country-by-country reporting law passed by parliament

Country-by-country reporting, Luxembourg

The parliament on 13 December 2016 passed legislation providing for non-public country-by-country (CbC) reporting, and transposing an EU directive—EU Directive 2016/881 (25 May 2016) or “DAC 4”— into Luxembourg domestic law.

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CbC filing, notification requirements

CbC reporting applies to multinational enterprise (MNE) groups with total consolidated group revenue exceeding €750 million (or an equivalent amount in the local currency) during the prior fiscal year.

Certain Luxembourg group entities will have to comply with filing and notification requirements. Currently, the Luxembourg authorities have not provide official information regarding the procedures for CbC filing and notification; however, there is an understanding that such filing and notification could be expected to be completed via the online system “MyGuichet.”

  • CbC notifications about the reporting entity must be provided no later than the last day of the reporting fiscal year of the MNE group—i.e., by 31 December 2016, if the accounting year is the calendar year, or by another date based on the MNE’s fiscal year (e.g., by 31 March 2017 if the accounting period begins 1 April 2016).
  • The CbC report must be filed with the tax authorities within 12 months of the last day of the reporting fiscal year of the group: (1) by 31 December 2017, if the accounting year of the MNE group for 2016 ends on 31 December 2016; or (2) by another date based on the fiscal year of the MNE group (e.g., by 31 January 2018, if the accounting period begins on 1 February 2016 and ends on 31 January 2017).
  • In line with DAC 4, the Luxembourg measures require the first CbC report to be filed for the fiscal year of the MNE group beginning on or after 1 January 2016. However, the reporting period may differ in third countries. 

Failure to comply with these rules may result in a penalty of up to €250,000.

 

Read a December 2016 report [PDF 486 KB] prepared by the KPMG member firm in Luxembourg: Luxembourg law on non-public country-by-country reporting passed

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