Trésorier/Treasurer magazine - N°89 - April/May/June 2015 - (Page 6)

Lux News Luxembourg Tax News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°89 - APR / MAY / JUN 2015 New tax ruling procedure 6 The Luxembourg government is committed to continue providing investors with upfront legal security by way of private tax rulings and advance pricing agreements for transactions or operations intended to be realized in Luxembourg. This commitment has been achieved by anchoring the possibility to request an advance decision in the General Tax Law via the Budget Law of 19 December 2014. This provision has been completed by a grand-ducal regulation of 23 December 2014 which lays down the procedural framework. One of the core novelties of the new procedure is the creation of a tax ruling commission ("Commission des Décisions Anticipée"), which will have a central role to play in the overall assessment process. While requests will continue to be submitted to the chief tax inspector of the competent taxation office (alternatively to the Director of the direct tax administration if the competent tax office is not determined yet), the latter must submit it for opinion to the CDA each time the request relates to the taxation of enterprises. A further amendment from the previous administrative practice consists in the fact the request for an advance decision will trigger the payment of a fee ranging between EUR 3,000 and 10,000, depending on the complexity of the request and the volume of work required. Circular on FATCA issued Luxembourg and the United States have signed on 28 March 2014 a Model 1 FATCA agreement. According to this Model, operators of the financial center provide the Luxembourg tax administration with data, which will then be communicated by the tax administration to the IRS. The tax authorities have issued a draft circular letter focusing on the legal requirements that Luxembourg has to fulfill, as well as a further draft circular letter defining the technical aspects of the transmission of information. Circular on the taxation of income realized by limited partnerships ("SCS") and special limited partnerships ("SCSp") The income realized by limited partnerships (société en commandite simple; "SCS") or special limited partnerships (société en commandite special; "SCSp") is subject to municipal business tax in principle only if the activity carried out is of commercial nature. The qualification of the activity and consequently of the income is hence a key issue for these types of tax transparent entities. The categorization of the activity often raises difficulties, and the tax authorities have issued Circular L.I.R. n°14/4 of 9 January 2015 aiming at clarifying the assessment criteria to be applied and the tax regime applicable to SCS / SCSp used as specific investment vehicles. It is, among others, clarified that SCS / SCSp qualifying as Alternative Investment Funds (AIF) according to the Law of 12 July 2013 on Alternative Investment Fund Managers are deemed not to be commercial. The same applies for SCS / SCSp opting for SICAR status. Circular on automatic exchange of information on interest payments The law of 25 November 2014 introducing the automatic exchange of information as regards interest payments made by paying agents established in Luxembourg to individuals resident either in another Member State or in a country or territory having signed an agreement on taxation of savings income in the form of interest payments. The law applies to interest paid after 31 December 2014; the first automatic exchange of information between competent authorities should thus take place in 2016. Any payment of interest as well as any withholding tax levied prior to 1 January 2015 will continue to be governed by the legal provisions pertaining to the withholding and the revenue sharing applicable prior to the entry into force of the new regulations. The tax authorities have issued a circular letter RIUE N°4 dated 19 January 2015 summarizing the main changes introduced by this law.

Table des matières de la publication Trésorier/Treasurer magazine - N°89 - April/May/June 2015

Cover
Table of contents
EDITORIAL
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW ICBC
FOCUS
Treasurers' kitchen nightmare
FATCA the next hassle for corporate treasurers?
Treasury is becoming much more...
One year on - EMIRage or EMIRate?
Making the most of trade reporting data
EMIR, where do we stand?
FORUM
Surety bonds - gaining acceptance globally as performance security
The colour of money
Money Market Funds - adapting to a challenging landscape
Comment offrir un meilleur rendement monétaire dans un univers de taux bas?
CORPORATE FINANCE
A repolution - The new Repurchase Conditions
Finding a technology partner in a world of change
Raising your Cyber Security level with Cyber Threat Intelligence
15 MINUTES AVEC CBTI
THE RISK OBSERVATORY
NEWS
LIFE BEYOND NUMBERS

Trésorier/Treasurer magazine - N°89 - April/May/June 2015