Law Implementing DAC 7 In Luxembourg Passed

THE LAW CONTAINS SEVERAL PROVISIONS THAT COMPLEMENT AND EXTEND EXISTING DOMESTIC RULES ON TAX TRANSPARENCY AND EXCHANGE OF INFORMATION.

On 16 May 2023, the Luxembourg Parliament adopted a law (the "Law") which implements Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation ("DAC 7").

The Law contains several provisions that complement and extend existing domestic rules on tax transparency and exchange of information. These include:

• Introduction of new rules on mandatory automatic exchange of information reported by digital platform operators.
• Introduction of automatic and mandatory exchange of information on persons resident in other Member States with respect to their ownership of real estate assets (exchange to cover information on taxable periods from 1 January 2025).