The global forum on transparency and exchange of information for tax purposes has released on 30 October 2015 new compliance ratings on transparency in tax matters following a peer review process.
Luxembourg received the overall rating of “largely compliant” with the Global Forum commending Luxembourg’s firm commitment towards the efficient implementation of internationally agreed transparency standards for tax purposes. Luxembourg now shares the same rating as the United States, the United Kingdom, Germany, the Netherlands and Italy, among others.
Luxembourg Finance Minister Pierre Gramegna commented: “We welcome this new compliance rating which recognises Luxembourg’s efforts and commitment to transparency and exchange of information. Luxembourg is no longer blacklisted. This is the result of a precise action plan which not only included a series of legislative and regulatory measures but also saw us improve our communication processes with international partners. We will continue to advocate for a global level playing field and support exchange of information on a broader basis.”
Luxembourg is among the early adopters of the application of automatic exchange at OECD level, the so-called Common Reporting Standard (CRS). Reportable information from 2016 will be exchanged with nearly 60 jurisdictions from 2017.
Luxembourg has abolished banking secrecy in 2014, in the context of the automatic exchange of information for EU residents, which it has been applying since the beginning of this year, followed in July 2015 by the entry into force of the automatic exchange of information for US persons under the provisions of FATCA.