On 3 March 2025, the government issued a draft Grand-Ducal Decree amending the existing Grand Ducal-Decree of 13 February 2018 implementing Article 4, paragraph 2, of the law of 23 December 2016 on Country-by-Country Reporting (“CbCR”), the purpose of which is to update the list of ‘Reportable Jurisdictions’ for CbCR to be submitted by multinational enterprise (“MNE”).
The draft has added the following jurisdictions to the list of Reportable Jurisdictions, effective from the respective fiscal years:
- Kenya – for fiscal years beginning on or after 1 January 2023
- Albania, Aruba, and Ukraine on or after 1 January 2024
- Belize, Curaçao, and Georgia – on or after 1 January 2025
- Armenia – on or after 1 January 2026.
As a reminder, according to the Article 4 of the law of 23 December 2016 on Country-by-Country Reporting (the law transposing Council Directive (EU) 2016/881 of 25 May 2016 amending Directive 2011/16/EU as regards the automatic and mandatory exchange of information in the field of taxation and concerning CbCR rules for multinational enterprise groups), the Luxembourg Tax Authorities shall automatically exchange the CbCR, within 15 months from the last day of the reporting fiscal year.
This exchange must be carried out with any reportable jurisdiction in which, based on the information contained in the CbCR, one or more ‘Constituent Entities’ of the MNE of the ‘Reporting Entity’ are either resident for tax purposes or subject to tax with respect to the business carried out through a permanent establishment.
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