Luxembourg has signed a comprehensive Double Taxation Agreement (DTA) with the Isle of Man, as part of an on-going programme of signing DTAs and Tax Information Exchange Agreements (TIEAs). The signing took place in London on 8 April 2013.
TIEAs are bilateral agreements under which jurisdictions agree on exchanging information on tax matters. The parties to the agreement are therefore able to enforce their national tax laws by requesting tax information from the other state.
The OECD has been encouraging all jurisdictions to implement the international standards on transparency and exchange of information. Signing TIEAs is one of the ways in which jurisdictions can demonstrate that they are making serious efforts to conform to international requirements. The OECD has emphasized that jurisdictions should not only sign such agreements but take steps to implement the agreed terms in practice.
