POLITICS & INSTITUTIONS - ECONOMY

US and Luxembourg ratify double taxation protocol



US ambassador to Luxembourg Randy Evans is pictured with Luxembourg finance minister Pierre Gramegna Luxembourg finance ministry

US ambassador to Luxembourg Randy Evans is pictured with Luxembourg finance minister Pierre Gramegna Luxembourg finance ministry

Luxembourg and the US have amended their double taxation convention, updating the exchange of information article to harmonise it with that of the US model income tax treaty and the OECD.

US ambassador to Luxembourg Randy Evans and Luxembourg finance minister Pierre Gramegna (DP) on Monday announced the ratification of a 2009 protocol amending the convention in both jurisdictions for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital.

According to a statement issued by the Luxembourg government on Monday, the convention applies to requests for information made on or after the date of entry into force for tax years on or after 1 January 2009. It further wrote that the provisions of the protocol, which allow for information held by financial institutions to be exchanged on request between Luxembourg and the United States of America are complementary to the Intergovernmental Agreement on Foreign Account Tax Compliance Act (FATCA) signed on 24 March 2014 and adopted by the law of 24July 2014.

“By aligning the convention to the internationally agreed standards of the OECD on the exchange of information on request, this protocol will help ensure better and simpler cooperation between our tax authorities. It is another common step in the further consolidation of our already excellent financial relations,” Gramegna said.