The Tax Management Transfer Pricing Report ™ provides news and analysis on U.S. and international governments’ tax policies regarding intercompany transfer pricing.
Aug. 15 — Companies doing business in Luxembourg will be required to file global tax information now that the nation has released draft legislation to implement new international tax reporting rules.
The rules—known as country-by-country reporting—would require companies to submit a global blueprint outlining the location of their operations, taxes paid, income earned, and other key aspects about their business. They were released last year by the Organization for Economic Cooperation and Development as part of a coordination multi-country effort against tax-base erosion and profit shifting.
When the draft legislation, released Aug. 2 is adopted, all companies with entities in Luxembourg with consolidated annual group revenue of at least 750 million euros ($839 million) would be required to file reports for tax years beginning after Jan. 1, 2016.
Companies that neglect to file could be fined as much as 250,000 euros, according to an Ernst & Young LLP alert analyzing the draft legislation.
The draft legislation also includes a secondary filing system for companies that have only subsidiaries, but not their parent organizations, in Luxembourg. The requirement can be satisfied if the parent jurisdiction requests the information itself, and submits it to Luxembourg through information-sharing treaties or agreements.
Luxembourg is one of 44 countries that signed onto the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports, committing to participating in a global exchange of the reports.
The European Parliament approved country-by-country reporting rules in May. The draft legislation would adopt the EU language into Luxembourg law (25 Transfer Pricing Report 102, 5/26/16).
To contact the reporter on this story: Alex M. Parker in Washington at email@example.com
To contact the editor responsible for this story: Rita McWilliams at firstname.lastname@example.org
Bill No. 7031 on country-by-country reporting is available, in French, at http://src.bna.com/hJl.
Copyright © 2016 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)