The Luxembourg Government has adopted a bill implementing its April 10, 2013, decision to apply compulsory automatic information exchange to savings income covered under the current European Union (EU) Savings Tax Directive from 1 January 2015.
Under the terms of the EU Savings Tax Directive, Luxembourg was entitled, during a transitional period, to levy a withholding tax in place of information exchange, until the end of the transitional period. Luxembourg elected, in April last year, to introduce automatic exchange of information (AEI) from next year, within the scope of the existing Savings Tax Directive. Consequently, it will cease to apply the withholding tax mechanism in 2015.
