Implementation Of Anti-Tax Avoidance Directive (ATAD 1)

On 19 June 2018 the bill of law 7318 ("Bill") was introduced to the Luxembourg parliament relating to the transposition of measures included in EU anti-tax avoidance Directive 2016/1164 ("ATAD 1") into national legislation. The Bill contains the ATAD 1 provisions concerning the following measures:

• Interest limitation rules (Art. 4 of ATAD 1)
• Exit taxation (Art. 5 of ATAD 1)
• General anti-abuse rule ("GAAR", Art. 6 of ATAD 1)
• Controlled foreign company ("CFC") rule (Art. 7 and 8 of ATAD 1);
• Intra-EU anti-hybrid rule (Art. 9 of ATAD 1)

Based on the ATAD 1, these measures have to be implemented by the EU Member States by 31 December 2018.

With the exception of the provisions on exit taxation which should apply as of 1 January 2020, it is expected that the above measures should come into force on 1 January 2019.