Luxembourg: FAQ on mandatory disclosure rules (DAC6)

FAQ on mandatory disclosure rules in relation to cross-border arrangements (DAC6)

FAQ on mandatory disclosure rules in relation to cross-border arrangements (DAC6)

The tax authority on 4 May 2022 published on its website a new “frequently asked question” (FAQ) on the mandatory automatic exchange of information in relation to cross-border arrangements (DAC6).

The new FAQ recaps and completes practical definitions which were already available in previous guidelines and also provides some useful clarifications on technical aspects of the DAC6 rules, namely on certain hallmarks and the main benefit test.

KPMG observation

Subject to further analysis and clarifications, the broad interpretation of some DAC6 concepts and hallmarks by the Luxembourg tax authorities might lead to increased reporting in the coming months and years.

Read a May 2022 report prepared by the KPMG member firm in Luxembourg


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