Adoption of the FATCA Law

On 1 July 2015, the Luxembourg Parliament adopted the Law for the ratification of the Intergovernmental Model 1 Agreement signed between the United States and Luxembourg on 28 March 2014 (the “FATCA Law”).

As stressed in our May 2015 Newsletter, the FATCA Law provides explicitly that the reporting institution should inform its client that certain information will be reported to the Luxembourg Tax Administration. In this context, the FATCA Law provides that the individual has the right to rectify the information reported.

In order to comply with the FATCA Law, the Luxembourg Tax Administration has postponed the date of the first reporting to the 31 August 2015.

It is now contemplated that the Luxembourg Tax Administration will issue a circular on the topic in the coming weeks.