Tax Information To EU Member States


Luxembourg To Give Tax Information To EU Countries:  The Governing Council of Luxembourg has passed a bill which approves a number of tax agreements in cooperation with key treaty partner countries and supports a draft law transferring Article 8 of the EU Council Directive regarding administrative support for various tax affairs.

Luxembourg Tax Information Treaty


Recently the Council approved the tax agreements with many offshore jurisdictions such as Saudi Arabia, Jersey, Guernsey, the Czech Republic and the Isle of Man and also approved certain protocols altering the already existing treaties with Slovenia as well as Denmark.


Purpose of these tax agreements is to foresee and avoid double taxation and to enhance financial relations for mutual interests. The accords are based on the OECD’s model convention which have as goal to provide information exchange upon request.


Moreover the Governing Council drafted a bill which carries the article 8 of the EU Council Directive, into the Luxembourg law which is referring to the administrative cooperation and the provision of the automatic and the obligatory and automatic exchange of information regarding five types of capital and income. The five categories are life insurance products, ownership of and income from immovable property, income from employment, pensions and director’s fees.


The article 8 which was transported into the Luxembourg law, requires that the proper authority of an European country is expected to exchange, in an organized way, information regarding persons that are residents in other EU countries for periods subjected to tax, starting from 1st January 2014 and provided that such information is indeed available.


The Directive which includes article 8, was applied as from 1st January 2013 and from the year 2015, European countries are going to be obligated to provide automatic information exchange and by the year 2017 the latest will be asked to enter into force the system for three of the income types, at least.


Going back to the year 2010, December, Luxembourg consented to automatically exchange non banking information regarding income from employment, from pensions, from director’s fees and from royalties. Information regarding the above mentioned categories does not fall into banking secrecy and are available from the Tax Authority by submitting certain electronic forms.