Corporate Tax 2021 - Luxembourg

Overview of corporate tax work

Luxembourg continues to be a global leader as a platform for international business, investment funds and cross-border financing. As the pandemic endured through 2020, Luxembourg continued to apply COVID-19 measures as well as OECD guidance with respect to pragmatic emergency measures to facilitate Luxembourg investment funds and companies to operate effectively. Luxembourg also continues to update its tax laws in harmony with ongoing changes to EU and OECD policies while maintaining its competitive tax regimes, including the enactment of the EU's DAC6 mandatory disclosure rules and issuing guidance on applying the complex anti-abuse rules found in the EU's Anti-Tax Avoidance Directives ("ATAD"). Luxembourg tax litigation has continued with a slight increase over the past 12 months with the majority relating to transfer pricing. The Luxembourg Court has also issued several decisions, which addressed challenges by the Luxembourg tax