Keeping up with Tax Banking & Capital Markets - 2023 Fall edition
We hope that you enjoyed the summer, and we welcome you to the Autumn edition of Keeping up with Tax for Banking and Capital Markets!
Since most of us are now back to work, our Autumn edition is picking up on a range of current hot topics and latest tax developments relevant to our industry which will acquire our attention in the coming months.
Specifically, the articles cover the following areas:
- FASTER: Commission proposal for Faster and Safer Withholding Tax Procedures
- The new investment tax credit in Luxembourg: an in-depth modernisation
- Luxembourg releases draft law to implement global minimum tax
- Notification to individuals reported under DAC – A new mandatory requirement in the Luxembourg legal framework
On top of these new hot topics of interest to our industry, please find below the latest CESOP trends and expectations for 2024:
In less than 3 months, the CESOP framework will go live! Starting 1 January 2024, all Payment Service Providers operating within the European Union will have a mandatory obligation to report specific cross-border payment transactions. Have you commenced your scoping exercise? Have you selected your technological solution to address last-mile reporting to local tax authorities? Consider conducting a thorough CESOP impact assessment to clarify your obligations and responsibilities. We are here to assist.
For more information, clich here.
Please get in touch with me or your regular PwC contacts if there is anything that you would like to discuss further. Please also let us know if there are any topics that you would like us to cover in upcoming editions.
Kind regards,
Murielle Filipucci and Nenad Ilic
FASTER: Commission’s proposal for Faster and Safer Withholding Tax Procedures
As you are no doubt aware, the European Commission published the draft Faster and Safer Relief of Excess Withholding Taxes (FASTER) Directive on 19 June 2023 (click here for the draft Directive). It has the laudable aim of making withholding tax (WHT) procedures in the European Union more efficient and secure for investors, financial intermediaries, and Member State tax administrations. So, is this aim achievable and does the draft Directive enable this?
Luxembourg releases draft law to implement global minimum tax
On 4 August 2023, the Luxembourg draft law to implement the global minimum tax was released (n°8292, hereafter “the draft law”). The draft law would transpose the EU Council Directive 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union, known as the EU Pillar Two Directive or the GloBE Directive (Global anti-Base Erosion Directive). The EU Pillar Two Directive aims to implement a jurisdictional minimum taxation of at least 15 % and is based on the OECD Model Rules on Pillar Two that were released on 20 December 2021, with some necessary adjustments to guarantee conformity with EU law. The rules apply specifically for groups with a consolidated revenue of at least €750 million in at least two out of four preceding years.
The DRAFT Law proposition of the tax credit in Luxembourg: an in-depth modernisation
On 13 July 2023, a draft Law (n°8276, hereafter “the Draft Law”) was released, aiming to revamp the investment tax credits available under Article 152bis of the Luxembourg Income Tax Law (LITL).
Notification to individuals reported under DAC – A new mandatory requirement in the Luxembourg legal framework
On 3 May 2023, the Luxembourg Parliament voted in favour of a bill implementing Council Directive (EU) 2021/514 of 22 March 2021 (DAC 7).
The implementation of DAC 7 Law in the Luxembourg legal framework introduced new reporting requirements for platform operators including GDPR obligations and extended the reporting requirements under DAC, notably CRS Reporting and DAC 6 Reporting, concerning reportable individuals.
