Luxembourg: Updated FAQ on mandatory disclosure rules (DAC6)
The tax authority updated FAQs regarding mandatory disclosure rules
The tax authority updated FAQs regarding mandatory disclosure rules
The tax authority updated the “frequently asked question” (FAQ) on its website regarding the mandatory automatic exchange of information in relation to cross-border arrangements (DAC6).
The updates concern:
- Legal professional privilege and notification obligations (section 6)
- Hallmark C.1.a—cross-border tax deductible payments to an associated enterprise that is not tax resident anywhere (section 11.3.1)
- Hallmark C.1.d—cross-border tax deductible payments to an associated enterprise, where the payment benefits from a preferential tax regime (new section 11.3.4)
- Hallmark E.3—intragroup cross-border transfer of assets/risks/functions with an impact on the earnings before interest and taxes (EBIT):
- Concept of transfer (section 11.5.2)
- Migrations with continuity of legal personality (new section 11.5.3)
- Definition of EBIT (section 11.5.4)
- How to compute the EBIT reduction to assess hallmark E.3 (new section 11.5.5)
Read a July 2023 report prepared by the KPMG member firm in Luxembourg
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