Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 6)

Lux News LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°91 - OCT / NOV / DEC 2015 Luxembourg Tax News 6 Indirect Tax Direct Tax Recovery of VAT by holding companies FATCA On 16 July 2015 the Court of Justice of the European Union (CJEU) has delivered its judgment in the joined cases Larentia +Minerva (C-108/14) and Marenave (C109/14) regarding the right of holding companies to recover VAT when rendering management services to companies in which they hold shares. The CJEU recognized, in its judgment, that such companies could have a full VAT deduction right unless they also perform VAT exempt transactions. The determination of the VAT status of holding companies and of their right to deduct VAT has always been complex. This is illustrated by the number of decisions released by the CJEU on this subject (Polysar Investments Netherlands, C-60/90, Floridienne and Berginvest, C-42/99, EDM C-77/01, Kretztechnik, C-465/03, Securenta, C-437/06, Cibo Participations, C16/00, Portugal Telecom C-496/11). In the light of these Court cases, Luxembourg holding companies should be carefully examining whether they are taking full advantage of their right to recover input VAT in the context of their specific factual background. This is particularly true for holding companies rendering management services to some but not all undertakings in which they own shares and/or also providing VAT exempt services. Yannick Zeippen, Partner, Indirect Tax, EY Luxembourg Jacques Verschaffel, Executive Director, Indirect Tax, EY Luxembourg On 29 July 2015, the FATCA agreement signed with the US, including the Memorandum of Understanding signed on 28 March 2014 and the exchange of notes, entered into force for both Contracting Parties. Where the deadline for the 2015 FATCA reporting has exceptionally been extended, the deadline for subsequent years is expected to remain unchanged at 30 June. The tax authorities have published two Circulars (ECHA Nos. 2 and 3) that provide more detailed guidelines on the application of the agreement by Luxembourg financial institutions and on the format to be used by financial institutions for submitting the required information to the Luxembourg tax administration. Draft law transposing amended PSD Directive into Luxembourg law On 5 August 2015, Luxembourg published a draft law which enacts the amendments to the Parent-Subsidiary Directive as adopted by the European Council in 2014 and 2015. The draft law introduces into domestic law a rule preventing

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015

Table of contents
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
CEO impersonation
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise

Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015