New Relibi Circular

On 22 February 2023, the Administration des Contributions Directes published a circular concerning the so-called "Relibi Law" ("Circular"). As a reminder, the Relibi Law of 23 December 2005 as amended, provides for a 20% withholding tax on interest payments made to or for the benefit of a Luxembourg resident individual who is the beneficial owner of the payment. The withholding tax is paid by the paying agent. The Circular has clarified a number of points:

• the object of the law (Art. 1 of the Relibi Law);
• the beneficial owner (Art. 2 of the Relibi Law );
• the definition of the paying agent (Art. 3 of the Relibi Law );
• the scope of the withholding tax (Art. 4 of the Relibi Law );