Tax transparency, Tax compliance and Exchange of Information
Exchange of Information: CRS and FATCA
New operating business models emerge for Financial Institutions
Further to the financial and banking crisis, the fight against tax shortfalls and tax evasion has become a priority for all the governments around the world. We have entered into a new era of tax transparency. Regulations are increasing rapidly with FATCA, CRS and Country-by-country reporting for instance.
2015 is a milestone for the revamping of the international tax system and Luxembourg is actively participating as an early adopter country. FATCA regulations have been published on 24 July 2015 with a first FATCA reporting on 31 August 2015 and CRS law has been voted on 18 December 2015. Those changes in the Luxembourg tax environment are translated into opportunities: Luxembourg continues to attract and is clearly positioned as a preferred location within the EU market.
Thanks to the pro-active approach taken by the Luxembourg government in turning international political intentions into reality for more transparency and tax compliance, the country is now fully compliant with the new OECD rules, which set global standards to ensure the balance between transparency, compliance and the client’s needs for a high level of privacy protection.