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2020 Luxembourg budget draft law: Tax rulings granted before 2015 are no longer valid!

  • Luxembourg
  • Tax planning and consultancy


In Brief:

According to the 2020 budget draft law n°7500, published on 14 October 2019 (the “Bill”), the validity of advance tax agreements (“ATAs”) granted prior to 1 January 2015 should now be limited to five years.

Since most of the Bill’s tax provisions are of limited importance for financial actors of the place, this specific provision may have a substantial impact on structures set-up in Luxembourg before 2015.

According to the former Luxembourg tax authorities’ practice, ATAs granted before 1 January 2015 were, indeed, not limited in time. The law of 19 December 2014 introduced a fully new procedure for the issuance of ATAs, which has notably limited their validity to five years.

The objective of this proposed measure is to ensure a legal consistency between old ATAs and ATAs granted under the current procedure.

If the Bill is voted as such, all the ATAs granted before 1 January 2015 will automatically cease to be in force as from the end of the 2019 tax year. Taxpayers relying on such ATAs will be able to rely on them for the last time for their 2019 tax return.

Taxpayers willing to still benefit from older ATAs are now invited to submit a new ATA request pursuant the current procedure (i.e. article 29a Abgabenordnung).

This provision, if enacted, should lead in practice to a global review of the ATAs currently in place to analyse whether they have to be renewed.

How can we help you ?

At Eversheds Sutherland, we provide innovative, client-focused, local and international tax expertise through our comprehensive international network that gives access to market leading tax experts from all around the world. We are one of the few international full service law firms with this bench strength in tax, allowing us to more efficiently handle the most intricate tax matters and offer a seamless multi-jurisdictional tax advisory service to our domestic and international clients. The firm has a global footprint of over 5,000 people, including 700 partners and 3,000 lawyers, spanning 69 offices in 34 countries and is active in every major economy and in every area of taxation.

If you would like to further discuss the above with us please contact our tax law experts Olivier Gaston-Braud and Marion Zeller, via the contact details below.

For more information contact

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