FATCA

The law ratifying the execution of the FATCA Intergovernmental Agreement signed between Luxembourg and the United States of America on 28 March 2014, the related Appendices, the Memorandum of Understanding as well as the related exchange of notes was voted and passed on 24 July 2015, and subsequently published in the Luxembourg official gazette on 29 July 2015.

The FATCA law defines the Luxembourg tax authorities as being the competent authority and also determines the obligations and framework which will apply to Luxembourg reporting institutions as regards the control, identification and reporting of financial accounts of US persons. Interestingly, FATCA law provides that a Luxembourg financial institution may use a definition of the US treasury regulations rather than a definition of the FATCA Intergovernmental Agreement under the condition that such definition is not contrary to the objectives of the Intergovernmental Agreement.

Luxembourg reporting institutions must file a FATCA reporting with the Luxembourg tax authorities for the preceding year by 30 June of the year following the reporting year. As concerns Luxembourg tax authorities, they will have to report to the competent US authorities no later than 30 September of the year following the reporting year. On 25 May 2015, the Luxembourg tax authorities had provided for a filing extension, on the basis of Luxembourg General Tax Law, of the first 2014 FATCA internal reporting until 31 July 2015, although FATCA law had not been voted yet. On 29 July 2015 the Luxembourg tax authorities announced on their website a further exceptional extension of the 2014 FATCA internal reporting deadline until 31 August 2015.

Luxembourg, 30 July 2015