Newsflash: DAC 6 Law Voted

On 21 March 2020, the Luxembourg Parliament passed a law to transpose the so-called "DAC 6" (EU Directive 2018/822 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements) into Luxembourg domestic law (the "Law") (first constitutional vote). A request to dispense with the second vote has been filed with the State Council.

DAC 6 requires EU "intermediaries" (or taxpayers) to report cross-border arrangements that strongly present a risk of tax avoidance or abuse.

The Law follows the text of DAC 6 closely when it comes to DAC 6's main concepts such as cross-border arrangements, intermediaries, associated enterprises, information to report, etc.. The Law provides for a few Luxembourg-specific elements where DAC 6 specifically leaves Member States discretion as to how to implement it.

In particular, Luxembourg opted to give lawyers, auditors and accountants - all covered by professional secrecy under the law of Luxembourg - the right to a waiver from filing information on a reportable cross-border arrangement. The exempted intermediary is however required to notify any other intermediaries of its reporting obligations. Failing such other...