Updated Grand Ducal Decree is published: list of CRS Reportable Jurisdictions for the year 2019

11/02/20

In brief

On 27 January 2020, a Grand Ducal Decree was published in the Official Gazette to update the list of jurisdictions considered as Reportable Jurisdictions (in French: « Juridictions soumises à déclaration ») for the year 2019 for the purpose of the Common Reporting Standard (CRS) in Luxembourg.

In detail

On 27 January 2020, a Grand Ducal Decree on CRS was published in the Official Gazette. The Grand Ducal Decree dated 24 January 2020 amends the previous Grand Ducal Decree dated 16 May 2019. It sets a new list of jurisdictions considered as Reportable Jurisdictions under CRS for the calendar year 2019.

Six countries, i.e. Albania, Dominica, Ecuador, Kazakhstan, Liberia and Oman, have been added to the list of Reportable Jurisdictions for the reporting for 2019.

In addition, the updated Grand Ducal Decree amends the list of Participating Jurisdictions adding three additional countries (i.e. Dominica, Morocco, Oman). These countries have signed the Multilateral Competent Authority Agreement (MCAA). Entities tax resident in those countries that qualify as Investment Entities managed by other Financial Institutions and were previously classified as Passive Non-Financial Entities (NFEs) will need to be re-classified as Financial Institutions (FIs).

What’s next?

The publication of the Reportable Jurisdictions list allows the Financial Institutions to determine the Account Holders that should be included in the 2019 CRS report.
According to the legal provisions under Luxembourg law, the deadline to report information related to accounts maintained in 2019 is set on 30 June 2020.

In order to properly identify the reportable Account Holders, the Financial Institutions should ensure that procedures and policies are updated accordingly.
If such procedures are not yet written, we would recommend drafting them promptly in case of control from the Luxembourg tax authorities.

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