Luxembourg: CRS law (DAC 2) is enacted

Luxembourg enacts CRS law

A law implementing the common reporting standard (CRS) in Luxembourg law has been enacted. The law was published on 24 December 2015. Accordingly, the CRS measures for the automatic exchange of financial account information in the field of taxation are enacted as of the end of 2015.

Related content

The CRS law transposes into national law the Council Directive 2014/107/UE of 9 December 2014, amending Directive 2011/16/EU regarding the mandatory automatic exchange of information in the field of taxation (this is referred to as the "DAC 2"). The DAC 2 provides that EU Member States require their financial institutions to implement reporting and due diligence rules consistent with those set out in the common reporting standard (CRS) developed by the OECD.

A Grand-Ducal decree is expected in the near future to define certain items such as:

  • The lists of “excluded accounts”
  • “Nonreporting financial institutions” 
  • Jurisdictions considered to be “participating jurisdictions” from a Luxembourg perspective

The list of jurisdictions considered to be “reportable jurisdictions” by Luxembourg is expected to be published later during the year.

The Luxembourg tax authorities (Administration des Contributions Directes) is now expected to issue an initial administrative circular providing guidelines to Luxembourg financial institutions on the CRS implementation in Luxembourg.

Luxembourg has committed to implement the automatic exchange on financial account information as from year 2017 for the period relating to 2016.

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's new digital platform