umraniye escort pendik escort
maderba.com
implant
olabahis
canli poker siteleri meritslot oleybet giris adresi betgaranti
escort antalya
istanbul escort
sirinevler escort
antalya eskort bayan
brazzers
sikis
Articles

Luxembourg tax measures on non-cooperative jurisdictions: EU blacklist updated

Luxembourg tax measures on non-cooperative jurisdictions: EU blacklist

Luxembourg tax measures on non-cooperative jurisdictions: EU blacklist updated

07.10.2020 LU law

On 6 October 2020, the European Union list of non-cooperative jurisdictions (the “EU List") was updated. The changes have an impact on bill of law nº 7547, providing that, as from 1 January 2021, interest or royalties, accrued or paid, should no longer be deductible for tax purposes when the beneficiary is a related enterprise established in a country included in the EU List.

​On 30 March 2020, the Luxembourg Government has submitted bill of law nº 7547 (the “Bill") providing that, as from 1 January 2021, interest or royalties, accrued or paid, should not be deductible for tax purposes when the beneficiary is a related enterprise established in a country included in the EU List. ​

Under the Bill, the non-deductibility of interest and royalties, to be introduced through the amendment of article 168 of the Luxembourg Income Tax Law, should not apply where the Luxembourg company demonstrates that the transaction pursuant to which interest and royalties are paid is implemented for valid commercial reasons that reflect economic reality.

On 6 October 2020, the Council of the EU decided to remove Cayman Islands and Oman from the EU List, further to the implementation of specific measures by these jurisdictions.

Anguilla and Barbados were however added to the EU List following peer review reports published by the Global Forum on Transparency and Exchange of Information for Tax Purposes.

As of today, the Bill is still going through the legislative process[1] with a final vote expected before the end of the year. Arrangements involving Cayman entities should thus no longer be concerned by the upcoming measures, as long as the Cayman Islands remain excluded from the EU list. These measures will continue to impact structures where a Luxembourg taxpayer owes interest or royalties to a related enterprise which is tax resident in American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the U.S. Virgin Islands or Vanuatu.

For previous reporting and further details on the Bill, please see our newsflash of 3 April 2020.


[1] The most recent development being the Avis du Conseil d'État, dated 16 June 2020.​

Team

Related news

12.02.2021 EU law
After the Uber case and the Airbnb case … the Star Taxi App case: focus on the question of the qualification as “Information Society Service”

Articles - Societal and digital developments are reflected in the case law of the CJEU. For several years now, European judges resolve disputes relating to digital applications and the services they provide. On 3 December 2020, they handed down a judgment in a case concerning Star Taxi App. This blog analyses the Star Taxi App case law in the light of the Uber case law and the Airbnb case law. The three judgments have in common the question of the qualification of services as Information Society Services.  

Read more

04.02.2021 NL law
ECJ clarifies limits of antitrust limitation periods

Short Reads - Companies confronted with antitrust investigations and fines may find safeguard behind the rules governing limitation periods (often termed ‘statutes of limitation’). However, two preliminary rulings by the European Court of Justice (ECJ) show that those rules are not necessarily set in stone. According to the ECJ, national time limits relating to the imposition of antitrust fines may require deactivation if these limits result in a ‘systemic risk’ that antitrust infringements may go unpunished.

Read more

04.02.2021 NL law
Game over? Gaming companies fined for geo-blocking

Short Reads - The Commission’s cross-border sales crusade seems far from over. The EUR 7.8 million fine imposed on distribution platform owner Valve and five PC video games publishers for geo-blocking practices is the most recent notch in the Commission’s belt. Food producer Mondelĕz may be next on the Commission’s hit list: a formal investigation into possible cross-border trade restrictions was opened recently.

Read more