Under the EU anti-tax avoidance directive ('ATAD 1') published in July 2016, EU Member States have until December 31, 2018 to transpose ATAD 1 into their domestic laws. On June 19, 2018, the Luxembourg government tabled a draft bill (n°7318) (the 'draft law') before the Luxembourg Parliament (Chambre des Députés) that would implement ATAD 1 as Luxembourg domestic law.
On October 5, 2018, the Chamber of Commerce issued extensive comments to the draft law. The State Council also published, on November 13, its comments on the text and expressed a view on areas needing changes or more clarification.
Amendments to the draft law now have been released to meet the modifications required by the State Council. These amendments are minimal, and most of the prior questions and comments remain. This Insight briefly covers significant clarifications or changes versus clerical amendments.
The draft law needs to go through the Luxembourg legislative process. Although changes are not expected, the law may be subject to further amendments before the Luxembourg Parliament final vote.
