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ARTICLE · 06 AUGUST 2025

Luxembourg Submits Draft Law Transposing DAC9 And Amending Pillar Two Framework

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On 24 July 2025, the Luxembourg government released the draft law No. 8591 ("the Draft Law") transposing the Directive (EU) 2025/872 ("DAC9")...

LuxembourgTax
Andreas Medler
Andreas Medler

On 24 July 2025, the Luxembourg government released the draft law No. 8591 (“the Draft Law”) transposing the Directive (EU) 2025/872 (“DAC9”) amending the Directive on administrative cooperation in the field of taxation (“DAC”) for the ninth time to facilitate compliance with the filing obligations of companies under the 2022 Pillar Two directive1 which aims to ensure a global minimum level of taxation for multinational enterprise (“MNE”) groups and large-scale domestic groups (“LSDGs“) in the EU.

The Draft Law introduces targeted amendments to the existing Pillar Two Law with a focus on easing the compliance burden and clarifying the treatment of deferred taxes for Pillar Two purposes. In line with DAC9, Luxembourg establishes the foundation for a system for tax authorities to exchange Pillar Two information with each other.

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