Luxembourg: “DAC 2” legislation introduced; CRS-like regime

Luxembourg: “DAC 2” legislation introduced; CRS-like

A bill submitted to the Luxembourg Parliament in November 2015 would transpose, into Luxembourg domestic law, an EU directive amending a 2011 directive for administrative cooperation and concerning the exchange of information on request. The directive (2011/16/EU) as amended, is referred to as “DAC 2” (the updated “directive on administrative cooperation”).

Related content

Background

The EU Council in December 2014 adopted DAC 2 to amend Directive 2011/16/EU on administrative cooperation in the field of taxation—a step towards the adoption of a FATCA-like automatic exchange of information mechanism throughout the European Union. Under the amended directive, beginning in 2017, information related to fiscal years, measured from 1 January 2016, will be exchanged on an automatic basis between EU Member States. 

The EC published lists of “excluded accounts” and “non-reporting financial institutions.” For Luxembourg purposes, three categories of accounts are considered to be “excluded accounts”—

  • Personal pension contracts (Comptes ouverts en vertu d'un contrat prévoyance-vieillesse visé par l'article 111bis de la loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu
  • Housing savings contracts (Comptes ouverts en vertu d'un contrat d'épargne-logement visé par l'article 111 alinéa 1er de la loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu
  • Occupational pension schemes (Comptes ouverts en vertu d'un régime complémentaire de pension visé par l'article 110 de la loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu

For Luxembourg, no entity is included in the list of “non-reporting financial institutions.

What’s next?

The next steps for enactment of DAC 2 and the common reporting standard (CRS) in Luxembourg would be: 

  • Voting by the Parliament on the bill of law transposing the DAC 2 into Luxembourg domestic law
  • Publication of the Luxembourg lists of participating jurisdictions and reportable jurisdictions

Both of these actions are expected to happen before the end of 2015.

 

Read a November 2015 report [PDF 103 KB] prepared by the KPMG member firm in Luxembourg: DAC 2 – New Developments

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.