Draft Law on the automatic exchange of Rulings and APAs

On March 22nd 2016, the draft law transposing EU directive 2015/2375/EU of October 6th 2015 (the “Directive”) which introduces an automatic exchange of information as regards advance cross-border rulings (“Rulings”) and advance pricing arrangements (“APA”) has been submitted to the Luxembourg parliament (the “Draft Law”).

For more information on the Directive, please refer to our newsletter of January 2016 .

The exchange of information will apply to existing Rulings or APA issued, amended or renewed since January 1st 2012 and those that will be issued, amended or renewed after December 31st 2016. Rulings and APA issued, amended or renewed between January 1st 2012 and December 31st 2013 should however only be subject to the communication if they were still valid on January 1st 2014.

Rulings and APA issued, amended or renewed before April 1st 2016 for the benefit of persons, excluding those performing essentially financial or investment activities, whose annual net turnover at the level of the group is lower than EUR 40 million, will not be subject to the exchange of information.

Bilateral and Multilateral APA concluded with non EU countries fall outside the automatic exchange of information when the international treaty under which the APA has been negotiated does not allow its communication to third parties.

The automatic exchange of information will not apply to Rulings and APA issued for the benefit of individuals.

The law should become applicable as from January 1st 2017.