On 22 July 2020, the Luxembourg Parliament approved Bill No. 7625 (the “Law”) implementing Council Directive (EU) 2020/876 adopted on 24 June 2020 giving EU Member States the option to defer the deadlines for automatic exchanges of information under Directive 2014/107/EU (so called “DAC2”/CRS) and for filing and exchanging information on reportable cross-border arrangements under Directive 2018/822/EU (so called “DAC6”). The Law also defers reporting deadlines under the Foreign Account and Tax Compliance Act (so called “FATCA”).
No material modifications were made to the initially proposed text of the Law during the legislative process (in this respect, please refer to our previous Covid-19 related news.
Regarding new DAC6 deadlines
Please find below an overview of the DAC6 timetable taking into account the deferrals introduced by the Law.
REPORTING BY INTERMEDIARIES OR TAXPAYERS
WHEN WHAT WHO Before 28 February 2021 Reportable cross-border arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020•Promoters
•Service providers
•Taxpayers (as the case maybe)
30 days as from 1 January 2021 Reportable cross-border arrangements whose earliest Events* occurs between 1 July 2020 and 31 December 2020•Promoters
•Taxpayers (as the case maybe)
30 days as from the earliest Triggering Events** Reportable cross-border arrangements whose earliest Events* will occur after 31 December 2020•Promoters
•Taxpayers (as the case maybe)
30 days as from 1 January 2021 Reportable cross-border arrangements whose aid, assistance or advice is provided between 1 July 2020 and 31 December 2020•Service Providers
30 days as from the day after aid/ assistance/advice has been provided Reportable cross-border arrangements whose aid, assistance or advice will be provided after 31 December 2020•Service Providers
Before 30 April 2021 First quarterly reporting of marketable arrangements•Promoters
•Service providers
NOTIFICATION BY EXEMPT INTERMEDIARIES
WHEN WHAT 10 days as from 1 January 2021 Reportable cross-border arrangements whose earliest Events* occur between 1 July 2020 and 31 December 2020 10 days as from the earliest Triggering Events** Reportable cross-border arrangements whose earliest Events* will occur after 31 December 2020* Means the day when (i) the reportable cross-border arrangements are made available for implementation or (ii) the reportable cross-border arrangements are ready for implementation, or (iii) the first step in the implementation of the reportable cross-border arrangements occurred.
** Means (i) the day after the reportable arrangement is made available for implementation or (ii) the day after the reportable arrangement is ready for implementation or (iii) the day when the first step in the implementation of the reportable arrangement has been made.
Regarding new FATCA/CRS deadlines
The Law extends the deadlines for Luxembourg financial institutions to provide the Luxembourg tax authorities with information on “reportable financial accounts” in relation to the tax year 2019 to 30 September 2020 (instead of 30 June 2020).
