The law transposing the EU Directive 2016/881 of 25 May 2016 on country-by-country reporting (hereafter “CbC”) into domestic law was voted on December 13th 2016 and later published on December 27th 2016 in the official gazette (hereafter the “Law”). It thus became applicable as of 2016. For further details on CbC please refer to our articles EU Directive - CbC Reporting and Country-by-country reporting.

Pursuant to the Law, each Luxembourg entity of a multinational group that falls within the scope of CbC must notify each year before the end of the relevant reporting fiscal year of the group whether it is the reporting entity or, if it is not, the name and country of residence of the group entity that will submit the CbC report.

The deadline for the notification has been exceptionally extended to March 31st 2017.

For the year 2016, the deadline for the notification was therefore December 31st 2016 for multinational groups having a financial year that matches with the calendar year. Because of the late publication of the Law and in order to give taxpayers sufficient time to fulfil their filing obligations, the deadline for the notification has been exceptionally extended to March 31st 2017. The extension of the deadline was communicated by way of a newsletter issued by the Luxembourg tax authorities (as well as in the Frequently Asked Questions section of their website). For subsequent years, any late filing could result in fines of up to EUR 250,000.

An online system has been set up in order to file the above mentioned CbC notification directly through the website, which is however only accessible via an activated LuxTrust certificate that either the company itself or its mandate should own.