Luxembourg Implementation Of The EU Directive Setting New Transparency Rules For Intermediaries

On 8 August 2019, a draft law implementing the Council Directive (EU) 2018/822 of 25 May 2018 as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements ("DAC 6") was submitted by the government to the Luxembourg parliament.

As expected, the wording of draft law largely resembles the wording of the DAC 6 and the commentaries to the draft law provide only few explanations on how it will be interpreted and applied in practice. In this newsletter, we outline the content of the draft law and the related commentaries.

What type of arrangement will need to be reported?

Under the draft law, EU tax intermediaries such as tax advisers, accountants and lawyers that design and/or promote tax planning schemes, will have to report potentially aggressive tax planning cross-border arrangements to the tax authorities.