Article Post on 27 November 2020

The Luxembourg Double Tax Treaties Network

_List of double tax treaties in force and in negotiation as of 27 November 2020.

Situated at the crossroad of Europe, the Grand-Duchy of Luxembourg is based on a dynamic and open economy which actively promotes the development of cross border trade and investments. Its major role in terms of international trade in the sectors of banking and finance, investment funds and holding companies has for a consequence that a strong network of double tax treaties has been developed over the years. To that end, Luxembourg has entered into more than 80 comprehensive double tax treaties based on the OECD model tax convention on income and capital in order to mitigate the risks of double taxation for businesses.

The Grand Duchy treaty partners are amongst the most industrialised countries with inter alia all of the states in the European Union but Cyprus, the United States, Japan, Brazil, China, Mexico, Hong Kong and Russia, Canada. Luxembourg tax treaties as most bilateral agreements are designed and balanced to address a specific economic context. Given their very nature, tax treaties are constantly negotiated and updated to the latest international standards.

Another perspective to the steady expansion of Luxembourg tax treaties must be added. Luxembourg endorsed on 13 March 2009 the international standard of exchange of information upon request embodied in article 26-5 of the OECD model tax convention.

Latest updates:

2020

- 27 November 2020. Bill n°7725 implementing the Protocol - signed on 6 November 2020 - amending the Tax treaty with Russia was introduced in Luxembourg Parliament.

- 23 November 2020. Protocol amending the Tax treaty with Kazakhstan is in force as of 6 November 2020 (Memorial A 925, 23 November 2020).

17 November 2020. Luxembourg and Russia signed an Amicable Agreement amending the Tax treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital  through the Multilateral Convention to implement Tax treaty related measures to prevent base erosion and profit shifting.

9 November 2020. Luxembourg and the Czech Republic signed an Amicable Agreement relating to the amendments of the Tax treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital through the Multilateral Convention to implement Tax treaty related measures to prevent base erosion and profit shifting.

6 November 2020. Luxembourg and Russia signed a Protocol amending the Tax treaty signed on 23 June 1993.

- 07 October 2020. Agreement between Luxembourg and Germany with regard to teleworking conditions has been extended until 31 December 2020 (suspension of the limit of days of teleworking for cross-border workers).

- 25 August 2020. Law of 14 August implementing new Tax treaty - signed on 19 September 2018 - with Botswana has been published (Memorial A 709, 25 August 2020).

- 25 August 2020. Law of 14 August implementing the Protocol - signed on 14 October 2019 - amending the Tax treaty with Kazakhstan has been published (Memorial A 708, 25 August 2020).

- 24 August 2020. Agreement between Luxembourg and France with regard to teleworking conditions has been extended until 31 December 2020 (suspension of the limit of days of teleworking for cross-border workers).

- 24 August 2020. Agreement between Luxembourg and Belgium with regard to teleworking conditions has been extended until 31 December 2020 (suspension of the limit of days of teleworking for cross-border workers).

22 July 2020. Luxembourg Parliament voted to approve Bill n°7616 implementing the Protocol - signed on 03 May 2012 - amending the Tax treaty with Kazakhstan.

- 22 July 2020. Luxembourg Parliament voted to approve Bill n°7615 implementing new Tax treaty - signed on 19 September 2018 - with Botswana.

03 July 2020. Agreement between Luxembourg and Germany with regard to teleworking conditions has been extended until 31 August 2020 (suspension of the limit of days of teleworking for cross-border workers).

24 June 2020. Agreement between Luxembourg and France with regard to teleworking conditions has been extended until 31 August 2020 (suspension of the limit of days of teleworking for cross-border workers).

22 June 2020. Agreement between Luxembourg and Belgium with regard to teleworking conditions has been extended until 31 August 2020 (suspension of the limit of days of teleworking for cross-border workers).

10 June 2020. Bill n°7616 implementing the Protocol – signed on 03 May 2012 - amending the Tax treaty with Kazakhstan was introduced in Luxembourg Parliament.

10 June 2020. Bill n°7615 implementing new Tax treaty – signed on 19 September 2018 - with Botswana (including provisions of OECD Tax Convention) was introduced in Luxembourg Parliament.

19 May 2020. Further to the exceptional COVID-19 crisis, Luxembourg and Belgium signed an amicable Agreement with regard to teleworking conditions (suspension of the limit of days of teleworking for cross-border workers until 30 June 2020).

06 April 2020. Law of 25 March 2020 implementing the Protocol amending the new Tax treaty with France has been published (Memorial A 245, 06 April 2020).

03 April 2020. Further to the exceptional COVID-19 crisis, Luxembourg and Germany signed an amicable Agreement with regard to teleworking conditions (suspension of the limit of days of teleworking for cross-border workers).

19 March 2020. Further to the exceptional COVID-19 crisis, Luxembourg and France signed a Protocol with regard to teleworking conditions (suspension of the limit of days of teleworking for cross-border workers).

16 March 2020. Further to the exceptional COVID-19 crisis, Luxembourg and Belgium signed a Protocol with regard to teleworking conditions (suspension of the limit of days of teleworking for cross-border workers).

 2019

- 23 December 2019. Law of 20 December 2019 implementing a double Tax treaty with Argentina has been published (Memorial A 871, 23 December 2019)

- 16 December 2019. Bill n°7505 implementing the Protocol amending the new Tax treaty with France was introduced in Luxembourg Parliament

- 11 December 2019. Luxembourg Parliament voted to approve Bill n°7492 implementing new Tax treaty - signed on 13 April 2019 - with Argentina

- 23 October 2019. Bill n° 7492 implementing new Tax treaty with Argentina (including provisions of OECD Tax Convention) was introduced in Luxembourg Parliament

- 10 October 2019. A Protocol amending the new Tax treaty with France has been signed

- 25 September 2019. New Tax treaty with France is in force as of 19 August 2019 and applicable as of 01 January 2020 (Memorial A 636, 25 September 2019)

- 16 September 2019. Protocol on exchange of information with the United States of America is in force as of 09 September 2019 and will be applicable as of 01 January 2020 (Memorial A 606, 16 September 2019)

- 03 September 2019. Protocol on exchange of information with Uzbekistan is in force as of 26 July 2019 and will be applicable as of 01 January 2020 (Memorial A 583, 03 September 2019)

- 30 July 2019. New Tax treaty with Kosovo is in force as of 23 July 2019 and will be applicable as of 01 January 2020 (Memorial A 522, 30 July 2019)

- 12 July 2019. Law of 12 July implementing a new double Tax treaty with France, a double Tax treaty with Kosovo and two protocols to the Tax treaties with Belgium and Uzbekistan has been published (Memorial A 495, 12 July 2019)

- 02 July 2019. Luxembourg Parliament voted to approve Bill n°7390 : 

  • Implementing a new double Tax treaty - signed on 20 March 2018 - with France replacing the previous treaty that was signed on 1 April 1958 
  • Implementing a double Tax treaty - signed on 8 December 2017 - with Kosovo for the elimination of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance (including provisions of OECD Tax Convention)
  • Implementing two Protocols to the tax treaties with Belgium (signed on 5 December 2017) and Uzbekistan (signed on 18 September 2017)

- 13 April 2019. New Tax treaty (including provisions of OECD Tax Convention, latest developments regarding ATAD and BEPS) was signed with Argentina.

- 14 February 2019. France has ratified the new Tax treaty (signed on 20 March 2018).

2018

- 19 September 2018. New Tax treaty (including provisions of OECD Tax Convention) was signed with Botswana.

- 18 July 2018. New tax treaty with Cyprus is in force as of 08 June 2018 and will be applicable as of 01 January 2019 (Mémorial A 597, 18 July 2018).

- 14 June 2018. New tax treaty with Senegal is in force as of 14 June 2018 and will be applicable as of 01 January 2019 (Mémorial A 516, 22 June 2018 ).

- 20 April 2018. Law of 17 April implementing double tax treaty with Cyprus (including provisions of OECD Tax Convention) was published (Mémorial A 267, 20 April 2018). The double tax treaty shall enter into force on 1st January 2019 but official publication not yet available.

- 22 March 2018. Luxembourg Parliament voted to approve Bill n° 7226 implementing a double tax treaty – signed on 8 May 2017 - with Cyprus (including provisions of OECD Tax Convention).

- 20 March 2018. Luxembourg and France signed a new double tax treaty (the “DTT”), replacing the double tax treaty that was signed on 1 April 1958. The DTT will incorporate, inter alia, the latest OECD approach (reflected in the 2017 version of the OECD Model Tax Convention and in the Multilateral Convention to Implement Tax Treaty Related Measures). In this context, the DTT introduces in particular new rules for the taxation of cross-border payments (such as dividends, interest and royalties), important changes regarding the taxation of real estate investments made by Luxembourg companies through dedicated French investment vehicles, redefines what constitutes a permanent establishment for the purpose of the DTT. The DTT will enter into force once both Luxembourg and French governments complete the ratification process. It is supposed that the provisions of the DTT could be applicable as from 1 January 2019.

2017

- 20 December 2017. Bill n° 7226 implementing new tax treaty with Cyprus (including provisions of OECD Tax Convention) was introduced in Luxembourg Parliament.

- 08 December 2017. New Tax treaty (including provisions of OECD Tax Convention) was signed with Kosovo.

- 05 December 2017.  Luxembourg and Belgium signed an amending Protocol to the existing Tax treaty regarding taxation of cross-border workers including the mutual agreement concluded on 16 March 2015.

- 01 December 2017. New Tax treaty (including provisions of OECD Tax Convention) signed with Cyprus in May has been approved by Luxembourg Government.

- 19 September 2017. Protocol on exchange of information upon request was signed with Uzbekistan. The protocol also retains the minimum standards for tax treaties resulting from the BEPS Action Plan and provides for assistance in the recovery of taxes.

- 08 May 2017. New Tax treaty (including provisions of OECD Tax Convention) was signed with Cyprus.

- 28 April 2017. The Tax treaty and the Protocol with Ukraine are in force as of 18 April 2017 and will be applicable as of 01 January 2018 (Mémorial A 447 and Mémorial A 448, 28 April 2017).

- 14 March 2017. Ukraine has ratified the Tax treaty (signed on 6 September 1997) and the Protocol (signed on 30 September 2016).

2016

- 28 December 2016.  Tax treaty with Brunei Darussalam will be in force as of 26 January 2017, Uruguay as of 11 January 2017 and Serbia is in force as of 27 December 2016. Applicability dates are also available (Mémorial A 307, 28 December 2016).

- 27 December 2016. Law of 23 December 2016 implementing new tax treaties with Brunei Darussalam, Senegal, Serbia, Uruguay, Ukraine (with Protocol), Hungary (replacing existing treaty) has been published (Mémorial A 270, 27 December 2016).

- 08 December 2016. Protocol on exchange of information with Tunisia is in force as of 31 November 2016 and will be applicable as of 01 January 2017 (Mémorial A 247, 08 December 2016).

- 30 November 2016. Bill n°7079 implementing new tax treaties with Brunei Darussalam, Senegal,  Serbia, Uruguay, Ukraine (with Protocol), Hungary (replacing existing treaty)  was introduced in Luxembourg Parliament.

- 30 September 2016. Luxembourg and Ukraine signed an amending Protocol to the not yet in force Luxembourg-Ukraine tax treaty signed on 6 September 1997.

- 07 March 2016. New tax treaty with Andorra (including exchange of information upon request provisions) is in force as of 07 March 2016 and will be applicable as of 01 January 2017 (Mémorial A 32 of  10 March 2016).

- 10 February 2016. New tax treaty was signed with Senegal (including provisions of OECD and UN Models Tax Conventions).

- 05 February 2016. New tax treaty (replacing the existing treaty of 23 May 2006) and new protocol on exchange of information upon request with Estonia are in force as of 11 December 2015 and are applicable as of 01 January 2016 (Mémorial A 12 of 5 February 2016).

- 22 January 2016. Protocol to France-Luxembourg tax treaty amending art.3 relating to the taxation of capital gain on participation in “real estate-rich” companies will be in force as of 01 February 2016 and will be applicable as of 01 January 2017 (Mémorial A 6 of  22 January 2016). For more information please refer to our alert: Fourth amendment of the Luxembourg and France double tax treaty.

- 08 January 2016. New tax treaty with Croatia (including exchange of information upon request provisions) will be in force as of 13 January 2016 and will be applicable as of 01 January 2017 (Mémorial A 2 of 08 January 2016).

 

For earlier updates, please refer to the Archives page: www.wildgen.lu/our-insights/article/luxembourg-double-tax-treaties-network-archives

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