On December 28, 2015, the Luxembourg tax authorities released Circular L.I.R. nº104/2bis which imposed a new tax reporting requirement, effective January 1, 2016, on employers in Luxembourg whose employees receive stock options and other equity compensation awards.

In brief, employers must provide the local tax office to which they report (“Bureau RTS”) with a copy of the applicable equity compensation plan(s) and a list of beneficiaries (e.g., award recipients or, in the case of an employee stock purchase plan, eligible employees) at least two (2) months prior to the date the equity compensation plan is first offered to employees in Luxembourg (or as soon as possible for outstanding awards granted prior to January 1, 2016).

Although the Circular specifically only references stock option plans, the Luxembourg tax authorities informally have stated that the new tax reporting obligation applies to all equity compensation awards.