Luxembourg Tax Alert 2021-10
New EU Directives: Pillar Two and Shell Entities
New EU Directives: Pillar Two and Shell Entities
New EU Directives: Pillar Two and Shell Entities
On 22 December 2021, the European Commission published two proposed EU Directives that will be of major importance for the coming years.
Proposed EU Directive to implement Pillar Two in the EU
Only two days after the OECD released their model rules on Pillar Two as part of the OECD BEPS 2.0. initiative, the EU Commission published the Directive to incorporate these rules into EU law.
Please refer to this newsletter from the KPMG EU Tax Centre for an overview of the proposed Directive.
A short overview of the OECD’s BEPS 2.0. initiative, including the potential impact for Luxembourg can also be found in this newsletter.
Proposed EU Directive to Fight against the Misuse of Shell Entities for Tax Purposes
On the same day, the EU Commission published a proposed Directive to tackle legal entities with no or minimal substance and no economic activities that are used for improper tax purposes.
Please refer to this newsletter from the KPMG EU Tax Centre for an overview of the proposed Directive.
KPMG Luxembourg has a dedicated team of tax professionals to help you assess the impact of these new proposed Directives. Please contact us for any questions you might have.
