On 7 June 2017, Luxembourg together with 67 other jurisdictions,
signed the Multilateral Convention to Implement Tax Treaty Related
Measures to Prevent BEPS ("Multilateral Instrument" or
"MLI"). One of the main purposes of the
MLI is to update international tax rules and lessen the opportunity
for tax avoidance by multinational enterprises by transposing the
results from the BEPS project into more than 2,000 tax treaties
worldwide.
On 3 July 2018, the Luxembourg Government submitted Bill of Law 7333 approving the MLI to the
Luxembourg Parliament.
All 81 tax treaties concluded by Luxembourg that are currently
in force (including the new treaty with Senegal) are designated as
"Covered Tax Agreements"
("CTAs"). However, the extent to which
these CTAs will be amended as a result of the MLI will depend on
whether or not the other contracting state signed the MLI and on
the reservations and options taken by the signatory contracting
state.
