ARTICLE · 15 AUGUST 2019

Draft Law On ATAD2

ELVINGER HOSS PRUSSEN, société anonyme

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On 8 August 2019, Bill No. 7466 (the "Bill") implementing the Anti-Tax Avoidance Directive (EU) 2017/952 on hybrid mismatches ("ATAD2")

LuxembourgTax

Elvinger Hoss Prussen

On 8 August 2019, Bill No. 7466 (the "Bill") implementing the Anti-Tax Avoidance Directive (EU) 2017/952 on hybrid mismatches ("ATAD2") into Luxembourg domestic law was published.

ATAD2 amends Directive (EU) 2016/1164, which has already introduced a first set of rules targeting certain hybrid mismatches between EU Member States ("ATAD1"). ATAD2 extends the scope of ATAD1 hybrid mismatch rules to cover a wider variety of mismatches and mismatches between EU Member States and third countries.

The Bill's content largely reproduces that of ATAD2. The Bill also provides some useful clarifications, notably on the concept of "acting together". It is welcome that the Bill also implements ATAD2's carve-outs. Accordingly, the Bill addresses the four categories of hybrid mismatch arrangements provided for in ATAD2, namely:

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