Luxembourg Updates its Draft GloBE Law for OECD Administrative Guidance

Overview

On November 13, 2023, the Luxembourg Government issued amendments to update its draft law implementing the EU Minimum Tax Directive (Law 8292 issued on August 4, 2023).  

The original draft law included very few aspects of the OECD Administrative Guidance. One of the few aspects of the February 2023 Administrative Guidance incorporated in the original draft law was the debt release election in Article 16(12). None of provisions of the July 2023 OECD Administrative Guidance were included.

The November 2023 amendments to the draft law provide for numerous aspects of both sets of OECD Administrative Guidance (see our OECD Administrative Guidance: Domestic Implementation Matrix).

It should be noted that the preamble to the amendments notes that not all provisions of the OECD Administrative Guidance have been included in the draft law.

In particular currency rules in the July 2023 OECD Administrative Guidance are not included.

In addition the amendments to the Transitional Rules in Article 4 of the February 2023 Administrative Guidance are not included (Deferred tax assets with respect to tax credits under Article 9.1.1, the applicability of Article 9.1.3 to transactions similar to asset transfers and asset carrying value and deferred taxes under Article 9.1.3). 

Article 3 – New provision to Exclude Insurance Investment Entities from the Definition of an Intermediate Parent Entity or POPE