Your challenges, our knowledge

The new edition of the EU Tax Alert is available. With this publication we would like to keep you informed of the latest developments on EU tax law. We have summarised the highlights of this edition below.

In a market seemingly experiencing increased pricing for high-quality targets there appears to be a rise in the number of club deals, the term referring to the position where investors pool resources and share risk with the aim of acquiring larger or pricier targets.

It is expected that certain large multinationals will need to comply with public EU Country-by-Country (CbC) reporting rules by mid-2024. In a new video, our tax experts Maurice van Klaveren and Daniël van der Vliet highlight what this means for your organisation.

Loyens & Loeff Luxembourg is happy to announce the following promotions effective as of 1 January 2022

The draft bill of Luxembourg law number 7916 (the Draft Bill 7916) published on 24 November 2021, providing for an extension of the measures set out in the law of 23 September 2020 concerning the holding of meetings in companies and other legal entities, as amended (the 23 September 2020 Law) was passed into law on 17 December 2021 (the 17 December 2021 Law).

The CSSF published three circulars on 22 December 2021 on new reports and management letters to be completed on the CSSF’s eDesk platform by Luxembourg investment fund managers (IFMs), undertakings for collective investment supervised by the CSSF for AML/CFT purposes (UCIs) and their approved statutory auditors (réviseurs d’entreprises agréé, REA).

On 22 December 2021, the European Commission released several legislative proposals that will impact corporate taxpayers. The proposals build upon the international negotiations on the misuse of shell entities, Pillar Two, and reform plan of the Energy Taxation Directive.

As 2021 draws to a close, the Luxembourg Financial Intelligence Unit published its annual report for 2020. This newsflash summarises the key findings.

On 20 December 2021, the OECD released its Pillar Two model rules, also referred to as the “Anti Global Base Erosion” or “GloBE” rules, for participant jurisdictions to implement most of the Pillar Two rules. These rules seek enforcing a minimum 15% effective tax rate on profits earned by large multinational enterprises in each jurisdiction where they realise profits. The entry into force is targeted for 2023.

On 17 December 2021, the CSSF, being the Luxembourg competent authority under the Transparency Law, published a press release outlining a list of areas to which particular attention will be paid when monitoring and assessing the application of the relevant reporting requirements in relation to annual reports to be published by issuers in accordance with the provisions of the Transparency Law for the financial year of 2021.

On November 25, 2021, the European Commission released a proposal COM(2021)721 to amend Directive 2011/61/EU on Alternative Investment Fund Managers (the AIFMD). The proposal follows the review of the application and the scope of the AIFMD by the European Commission, as required under Article 69 AIFMD.

From UCITS to ESG, the Luxembourg investment fund industry has evolved significantly since taking off in the nineties, and especially over the last decade with the rapid development of alternative investment funds.