Luxembourg: Parliament passes bill to implement DAC7, affecting CRS
Notification requirement effective for the 2022 reporting year
Notification requirement effective for the 2022 reporting year
The Luxembourg Parliament on 3 May 2023 passed a bill implementing Council Directive (EU) 2021/514 (DAC7) that affects the common reporting standard (CRS) for reporting financial institutions with respect to reportable account holders.
Under the bill, each Luxembourg financial institution is required to:
- Notify each individual involved that their information will be gathered and transmitted in accordance with the law
- Provide each individual with all the information they may have access to from the controller within a reasonable timeframe that allows them to exercise their data protection rights (must be done before any information is shared with the Luxembourg tax authority)
The implementation of DAC7 mandates reporting financial institutions to notify their individual account holders/investors subject to CRS reporting of all the information to be reported prior to the submission, thus imposing an annual notification requirement. The notification requirement is effective for the 2022 reporting year. Thus, financial institutions will need to adhere to the new notification requirement immediately, for 2023 reporting.
Read a May 2023 report [PDF 202 KB] prepared by the KPMG member firm in Luxembourg
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