MLI: Ratification and deposit with OECD

By the Law of 7 March 2019 (“Law”), Luxembourg ratified the Multilateral Instrument ("MLI").

According to the Law, the MLI enters into force on the first day of the month following the expiration of a period of three calendar months beginning on the date of the deposit by Luxembourg of its instrument of ratification.

Accordingly, Luxembourg has deposited the ratification instrument with the Organisation for Economic Co-operation and Development ("OECD") on 9 April 2019.

The MLI will then enter into force on 1 August 2019. However, the provisions will become effective for each covered tax agreement ("CTA") if:

• the other party to the CTA has also chosen the treaty with Luxembourg as a CTA;
• the other party to the CTA has ratified the MLI; and
• both parties to the CTA have chosen to adopt the same provisions (with some exceptions allowed).

For more information regarding the date of entry into effect for each type of taxes and the list of reservations and notifications made by Luxembourg, please refer to our Tax Treaty News dated 14 September 2018 and 25 February 2019 as well as our Newsletter of July 2018.