Luxembourg: Implementation of EU Directive for automatic exchange of information
Luxembourg has recently enacted legislation to implement the EU Council Directive 2021/514, which focuses on the mandatory automatic exchange of information (AEOI) for digital platform operators, also known as DAC7. The implementation law was published in the Luxembourgish Official Gazette on May 19. It introduces several measures to ensure compliance and transparency in this sector.
The newly enacted law includes provisions such as registration and notification obligations for platform operators. It also specifies the notification requirements set by the Direct Tax Administration. To enhance compliance, the law establishes due diligence procedures and reporting obligations for platform operators. Communication procedures between platform operators and the Direct Tax Administration are also outlined.
The law defines verification procedures and penalties for noncompliance to enforce adherence to the regulatory framework. Additionally, provisions on confidentiality and protection of personal data are included to safeguard individuals’ privacy rights. The law also introduces provisions for joint supervision by competent authorities to ensure effective oversight and coordination.
Certain administrative and tax laws have been amended to align with the directive’s requirements and facilitate smooth implementation. The law will enter into force on June 1, 2023. However, provisions related to joint supervision by competent authorities will come into effect on January 1, 2024.
Source: legilux.public.lu
