Exchange of information : updated jurisdictions

On 24 January 2020, a new grand-ducal regulation  (règlement grand-ducal) was adopted, amending the grand-ducal regulation of 13 February 2018. It provides an updated list of jurisdictions with which the Luxembourg Tax Authorities ("LTA") will exchange the Country-by-Country ("CbC") reports in accordance with the Law of 23 December 2016 implementing Directive (EU) 2016/881 of 25 May 2016 concerning the rules of CbC reporting.

As a reminder, the CbC reporting requires the ultimate Luxembourg parent company of a multinational enterprises (“MNE”) group whose total consolidated group revenue ("chiffre d’affaires total consolidé") exceeds EUR 750 million, to file annually with the Luxembourg Tax Authorities (“LTA")  CbC reports and to comply with annual notification requirements.

On the same day, another similar regulation  updated the list of jurisdictions considered to be “reportable jurisdictions” under the common reporting standard (“CRS”) for calendar year 2019. The updated list of reportable jurisdictions allows Financial Institutions to determine the account holders that should be included in the 2019 CRS report. It also provides with an updated list of “participating jurisdictions”. The participating jurisdictions list will in particular be relevant for the reporting obligations of the Luxembourg Financial Institutions (“FI”). When an entity account holder is resident in a country not listed as “participating jurisdictions” and classified as “investment entity managed by another FI”, the Luxembourg FI has to identify, and may report, the controlling persons of that entity.