New Bills On ATAD Implementation And MLI Approval

On 15 June 2018 the Luxembourg government approved 2 new bills of law:

the first bill of law ("ATAD Bill") implements the provisions of the Council Directive (EU) 2016/1164 - the so-called Anti-Tax Avoidance Directive ("ATAD"); and the second bill of law ("MLI Bill") approves the OECD's Multilateral Agreement ("MLI"). The ATAD was adopted by the Council of the European Union on 28 June 2016 in order to implement the OECD's recommendations in its Base Erosion and Profit Shifting ("BEPS") Project. Accordingly, the ATAD foresees new rules to be adopted by all EU Member States in the following 5 specific areas:

Interest limitation rules Exit taxation rules GAAR CFC rules Hybrid mismatch rules The ATAD Bill transposes these rules into Luxembourg domestic law, using all the flexibility of the ATAD regarding the optional provision for the sake of the continuity, legal certainty and simplification. In addition, the ATAD Bill introduces 2 additional measures not foreseen by the ATAD, i.e. amendments to the roll-over regime on capital gains and the permanent establishment definition. The ATAD Bill has already been filed with the Luxembourg parliament and the text is publicly available.

For a detailed description thereof, please click here

The MLI was adopted by the OECD on 24 November 2016, together with its explanatory statements, in accordance with Action...

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