An agreement on avoidance of double taxation came into force in Luxembourg

The Organization for Economic Cooperation and Development (OECD) reported that on April 9, 2019, Luxembourg had ratified the multilateral instrument (MLI) from BEPS program.

The BEPS MLI project was developed during negotiations with the participation of more than 100 countries and jurisdictions in the framework of the BEPS project. It is designed to enable countries to incorporate BEPS-related amendments to their tax agreements without the need for revising bilateral agreements in parts.

Earlier, amendments to the Luxembourg Agreement on the avoidance of double taxation to prevent the erosion of the tax base and the redistribution of profits will come into force on August 1, 2019.

This document will implement minimum standards to counter contractual abuses (action 6 under the BEPS program), prevent artificial evasion from the status of permanent establishment (action 7 under the BEPS program), neutralize the effects of hybrid non-conformance mechanisms (action 2 under the BEPS program) and improve mechanisms tax dispute resolution (Action 14 under the BEPS program).

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