On 18 June 2020, the Luxembourg Parliament passed bill 7527 on the modification of the Common Reporting Standard (CRS) Law and the FATCA Law into Luxembourg domestic tax law.
In summary, the new FATCA and CRS law (a) makes CRS nil returns mandatory (b) increases the penalties in case of non-filing or late filing of return from EUR 1 500 to EUR 10,000 in addition to the existing penalties (c) requires FIs to evidence adequately due diligence performed and procedures in place and (d) authorizes the tax authorities to carry out an audit within a 10-year time limit.
There should not be any significant amendments compared to the text in the original bill published on 20 February 2020. For more details, please access our corresponding newsletter.
As a reminder, for the year 2019, the Luxembourg government has introduced a bill to extend the CRS and FATCA reporting deadlines by 3 months to 30 September 2020. Until these legislative amendments come into force, the penalties for late transmission of the information laid out in the FATCA and CRS laws should not be applied. For more details please refer to our latest newsletter.
Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour 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.
© 2021 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network 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 https://home.kpmg/governance.