On 18 June 2020, the Luxembourg Parliament ratified the Draft Law No.7527 (without substantial changes from the draft law), thereby modifying the law of 24 July 2015 on the Foreign Account Tax Compliance Act (“FATCA Law”) and the law of 18 December 2015 on the Common Reporting Standard (“CRS Law”). FATCA and CRS constitute the two main frameworks for the automatic exchange of information in Luxembourg.
The modified FATCA Law and CRS Law impose additional obligations on Luxembourg reporting financial institutions, introduce the possibility of lump sum penalties in case of non-compliance and extend as well as clarify the Luxembourg tax authorities’ investigative powers (for more information, please refer to our April Newsletter).
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