INSIGHT: DAC 6 - New Reporting Obligations of Tax Intermediaries in Luxembourg

A draft law implementing the Council Directive (EU) 2018/822 of May 25, 2018 (DAC6) regarding mandatory exchange of information in the field of taxation in relation to reportable cross-border arrangements has been submitted by the government to the Luxembourg parliament.

As expected, the wording of the draft law largely resembles the wording of DAC6 and the commentaries to the draft law provide few explanations on how it will be interpreted and applied in practice. Therefore, some of the rather vague terms and concepts used in DAC6 will continue to give rise to uncertainty and will require interpretation.

The investments and business activities of Luxembourg companies often have a cross-border dimension. In these cases, the question needs to be answered whether a particular piece of advice, or involvement in implementation, is reportable. This article provides a clear and concise overview of the new mandatory disclosure regime and the mechanism that triggers reporting obligations.