On 8 January 2021, the Luxembourg tax authorities (LTA) issued highly anticipated guidance with respect to the application of article 168 bis of Luxembourg income tax law (LITL), which was introduced in 2018 through the implementation in Luxembourg law of the EU Directive 2016/1164 Anti-Tax Avoidance Directive
In December last year the European Commission published its much anticipated draft Digital Markets Act.
It is therefore important to review the VAT treatment of cross-border transactions with the UK. Below you will find a brief summary of the main changes in this regard.
On 8 January 2021, the Luxembourg direct tax authorities issued the Circular n°168bis/1 which clarifies the provisions of article 168 bis of the Luxembourg income tax law on the Luxembourg interest deduction limitation rule.
On 8 January 2021, the Luxembourg tax authorities issued a new Circular n° 168bis/1 (the “Circular”) in order to provide guidance on the interpretation of the interest deduction limitation rules (“IDLR”) laid down in Article 168bis of the Luxembourg income tax law (“LITL”).
With the end of the transition period as of 1 January 2021, the UK officially became a third country with respect to the EU, meaning that the EU VAT Directive has ceased to apply to it.
On 23 December 2020, the Luxembourg Budget Law was published in the MeÌmorial (“the Law”). It contains some tax measures aiming at promoting investment in sustainable economic activities and is part of a more extensive sustainable finance strategy for Luxembourg as an international financial centre.
The Commission de Surveillance du Secteur Financier (the CSSF), has issued a communication (the CSSF Communication) to inform investment fund managers (IFMs) of Luxembourg undertakings for collective investment in transferable securities (UCITS) and alternative investment funds (AIFs)
Changes as of 1 January 2021: increase of the minimum wage and provision of financial assistance to companies
Further to the long-awaited outcome of the Brexit negotiations on 24 December 2020, the Luxembourg financial supervisory authority – the Commission de Surveillance du Secteur Financier (“CSSF”)
