BEPS: Luxembourg Law Of 23 December 2016

In the context of action 13 of the base erosion and profits shifting ("BEPS") action plan, Luxembourg

Parliament adopted the Law dated 23 December 2016 implementing country-by-country reporting requirements for entities that are part of a multinational enterprise group ("MNE Group") ("CBCR Law") implementing the Council Directive (EU) 2016/881 of 25 May 2016 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation.

1. MNE Groups concerned

   MNE Groups are subject to the provision of the CBCR Law provided the total consolidated revenue of the MNE Group amounts to at least EUR 750 million as of January 2015 during the fiscal year preceding the reporting fiscal year.

   MNE Groups with a consolidated group revenue lower than EUR 750 million are considered as excluded MNE Groups and are thus not subject to reporting.

2. Reporting entities

   Luxembourg resident entities ("Reporting Entity") shall file a country-by-country-report ("Report") with the Luxembourg tax authorities if that entity is either:

   The "Ultimate Parent Entity" of a MNE Group (meaning that it prepares consolidated financial statements under accounting principles generally applied in Luxembourg or would be required to do so if its equity interests were traded on a public securities exchange; A "Surrogate Parent Entity " appointed by the MNE Group, as a sole substitute for the non- Luxembourg Ultimate Parent Entity when: the Ultimate Parent Entity of the MNE Group is not obliged to file a Report in its tax residence jurisdiction; or the jurisdiction in which the Ultimate Parent Entity is resident for tax purposes has no qualifying competent authority agreement in force with Luxembourg; or there has been a systemic failure of the jurisdiction of the tax residence of the Ultimate Parent Entity that has been notified by the Luxembourg tax administration to the Luxembourg resident constituent entity1 . Any Luxembourg tax resident entity if one of the above conditions under 2.a. to c. applies. C) Reportable information

   The CBCR Law requires the Reporting Entity to provide (i) information on revenues (excluding, however, payments qualifying as dividends under the law of source of such dividend), profits, taxes paid, capital, earnings, employees, and tangible assets on a country-by-country basis (ii) the list by country of the entities forming part of the MNE Group and their principal activity and (iii) any other information that the MNE Group...