On 21 March 2020, the Luxembourg Parliament passed a law to
transpose the so-called "DAC 6" (EU Directive 2018/822
amending Directive 2011/16/EU as regards mandatory automatic
exchange of information in the field of taxation in relation to
reportable cross-border arrangements) into Luxembourg domestic law
(the "Law") (first constitutional vote).
A request to dispense with the second vote has been filed with the
State Council.
DAC 6 requires EU "intermediaries" (or taxpayers) to
report cross-border arrangements that strongly present a risk of
tax avoidance or abuse.
The Law follows the text of DAC 6 closely when it comes to DAC
6's main concepts such as cross-border arrangements,
intermediaries, associated enterprises, information to report,
etc.. The Law provides for a few Luxembourg-specific elements where
DAC 6 specifically leaves Member States discretion as to how to
implement it.
