06/12/23

LUXEMBOURG: Luxembourg trails implementation of EU tax directive for multinationals

As published on: today.rtl.lu, Wednesday 6 December, 2023.

Luxembourg faces hurdles in adopting the EU directive on a 15% minimum tax rate for large multinationals, with key players like Amazon and Ferrero in the spotlight, as neighbouring countries advance legislation.

On Tuesday, the Chamber's finance commission discussed the implementation of the EU directive on Base Erosion and Profit Shifting (BEPS), which stipulates a minimum tax rate of 15% for multinational corporations whose "annual turnover exceeds €750 million and which have either a parent company or a subsidiary in an EU Member State".

In Luxembourg, the firms affected by this legislation include, among others, Ferrero, Amazon, ArcelorMittal, and Goodyear, according to an opinion issued by the Chamber of Employees.

While the directive was supposed to be implemented by the end of December, this timeline cannot be met for a variety of reasons, including the fact that the opinion from the state council is still outstanding. Nevertheless, Finance Minister Gilles Roth has insisted on passing the directive over the course of the next fiscal year.

When asked about the potential financial benefits for the Luxembourg government, Roth refrained from delving into the subject. Following enquiries from lawmakers, the Minister indicated that financial hubs like Ireland, Germany, Belgium, and France are edging closer to turning the EU tax directive into national law.

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Luxembourg EU tax directive Multinationals