Luxembourg law on reportable cross-border arrangements has been adopted on 25 March 2020 and will enter into force on 1 July 2020. This law transposes European Directive 2018/822 of 25 May 2018, better known as "DAC 6". The purpose of the DAC 6 law is to enable the tax authorities of EU member states to obtain information on potentially aggressive tax planning transactions to be able to take action against harmful tax practices.
In this context, DAC 6 law requires service providers qualified as "intermediaries"(1) to disclose any concerned(2)cross-border arrangement to the Luxembourg tax authorities, which will then communicate this arrangement to the member state’s tax authorities of any taxpayer concerned. Therefore Societe Generale Luxembourg may have to assume the reporting obligations specific to an intermediary within the meaning of DAC 6.
If you are a taxpayer concerned by cross-border arrangement for which Societe Generale Luxembourg has acted as an intermediary (within the meaning of the DAC 6 law), our establishment will send the Luxembourg tax authorities a description of the referred transaction as well as information relating to your identity.
Reportable cross-border arrangements implemented between 25 June 2018 and 30 June 2020 have to be reported by 31 August 2020 at the latest .
Reportable cross-border arrangements implemented from 1 July 2020 will have to be reported within 30 days of its implementation.
(1) The notion of intermediary defines any person established in the European Union who designs, markets, organizes or makes available for implementation or manages the implementation of a reportable cross-border arrangement.
(2) A device involving at least two different States, one of which is an EU state member and including at least one of the hallmarks listed in the appendix to the DAC 6 law. This may involve, for example, the use of hybrid financing to transform the nature of an income to avoid or reduce to zero the taxation of this income in a taxpayer's jurisdiction.