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.
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