Luxembourg’s intention to begin automatic exchange of information from January 1, 2015, is considered likely to have a significant impact on the financial sector. The national statistics agency Statec considers that a proportion of around five percent of assets under management may relocate from Luxembourg following this decision.
Luxembourg and other jurisdictions worldwide have been under pressure to increase tax transparency and to facilitate the exchange of tax information with other states. Pressure has come from the OECD which intends to introduce a global standard in information exchange, and from the European Union which especially wishes to increase the exchange of information in relation to the taxation of income from savings.
