Share with your friends

Luxembourg: Transposition of EU directive on cross-border arrangements (DAC 6)

Luxembourg: EU directive on cross-border arrangements

Text of a bill to transpose an EU Directive on administrative cooperation in the field of taxation (DAC 6)—also known as the EU Directive implementing mandatory disclosure rules for intermediaries—has been provided by the Chamber of Deputies.


Related content

Under the DAC 6, there is a new obligation for EU intermediaries (and taxpayers in some instances) to disclose certain cross-border arrangements to local tax authorities with that information then being shared with other EU tax authorities. Luxembourg’s directive-implementation process is on schedule, given that the EU Member States must transpose the DAC 6 into their domestic legislation before 31 December 2019.

Luxembourg-specific measures

The legislative language of the bill is substantially similar to the text of the DAC 6; however, the directive allows some leeway for EU Member States to transpose some of its provisions, and the bill includes a few Luxembourg-specific elements such as:

  • Lawyers that are protected by legal client-attorney privilege could benefit from a reduced reporting obligation under the bill.
  • Lawyers would need to provide the Luxembourg tax authorities with information about intermediaries, arrangements, hallmarks, and other items without disclosing the taxpayer’s identity.
  • Taxpayers would have to include a reference to reportable arrangements in their corporate tax returns.
  • The bill clarifies that the “main benefits test” also considers tax advantages that are obtained outside of the European Union.

The bill is now pending the legislative process in Luxembourg.

Read an August 2019 report prepared by the KPMG member firm in Luxembourg

© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today