StartCriminal tax lawInternational Exchange of InformationLuxembourg

Exchange of Information with Luxembourg

Luxembourg has been participating in the automatic exchange of information on interest income since 1.1.2015, and is expected to step up its efforts in 2016. LHP Attorneys offer advice and assistance in tax law matters.

Banking confidentiality in Luxembourg has been as good as abolished for German Tax Authorities and will be completely eliminated in the near future. Exchange of information for certain types of capital income for individuals is already happening. In the future, all legal entities including trusts will be affected. Luxembourg’s politicians withstood the pressure for a long time, but had to give in due to the international developments and the political pressure.

Previous developments and current situation: Exchange of Information with Luxembourg

Luxembourg's Minister for Finances declared in 2009, that Luxembourg would adopt the full OECD standards for the exchange of taxation information. The EU permitted Luxembourg to abstain from automatic reporting of interest income during a transitional period. Since early 2015, Luxembourg automatically reports information on certain capital income under the administrative assistance scheme. LHP Attorneys inform on the development and current situation of the exchange of information with Luxembourg.

What happened so far: Transition to the OECD standards for the exchange of taxation information

Current situation: Automatic exchange of information via the administrative assistance in taxation matters.

The automatic exchange of information with Luxembourg will be extended

In the future, the automatic exchange of information will be significantly extended, as soon as the AIA (new global standard, see information on the dedicated page) is applied, probably from 2017 onwards and for the retrospective taxation of 2016.

  • This new standard will not only affect individual taxpayers, but also legal entities and other entities such as trusts.
  • Further more, data on dividends and price gains earned directly or indirectly from 2016 onwards will be exchanged.
  • The balances of bank accounts will also be affected.
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