Tax update — April 2014: Luxembourg and international tax law

Arendt and Medernach’s quarterly tax update is dedicated to the main changes that have occurred over the last three months with regard to Luxembourg and international tax law.

Contents

Luxembourg news 

  • Introduction of a bill of law approving the Convention on Mutual Administrative Assistance in Tax Matters 
  • Introduction of a bill of law abolishing the withholding tax system under the EU Savings Directive 
  • New circular letter on the tax regime for highly skilled impatriates 
  • New circular letter on Luxembourg tax treatment of supplementary pension schemes 
  • Case law on the exchange of information — the foreign request must relate to defined taxpayers and cannot be extended to third parties (Cases No. 33272a and 33273a) 

International news 

  • Luxembourg concludes intergovernmental agreement with the US on FATCA 
  • Enlargement of the scope of the Savings Directive 
  • VAT exemption for management of defined-contribution pension schemes 
  • Loss of right to deduct VAT unduly paid 

Useful information 

  • Increase of VAT rates 
  • Notion of special investment fund in the real estate sector 
  • Independent groups of persons (IGP): Luxembourg’s VAT regime challenged by the EU Commission 
  • Tax treaty network

Click on the link below to read the Arendt & Medernach briefing.

Overview

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