Update on Withholding Tax Rules 2016
A brief overview is given by Weidema van Tol regarding the Luxembourg Withholding Tax Rules 2016.
In December 2014, Luxembourg committed to be among the first countries to transpose into national law the Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (the “Parent-Subsidiary Directive”), amended by the Council Directive 2014/86/EU of 8 July 2014 and subsequently amended by the Council Directive (EU) 2015/121 of 27 January 2015. Consequently, the general minimum anti-abuse rule (the “GAAR”) aims at preventing misuse of the Parent-Subsidiary Directive and tackling tax evasion, tax fraud or abusive practices in a general or specific way.
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