Analysis by ATOZ Tax Advisers, Taxand Luxembourg
On 26 February 2024, the European Union updated its list of non-cooperative tax jurisdictions, removing the Bahamas, Belize, the Seychelles, and the Turks and Caicos Islands, with the latter two now on the ‘Greylist’. This update affects Luxembourg’s tax measures, including the denial of corporate income tax deductions for payments to entities in blacklisted jurisdictions, and the mandatory disclosure of transactions with such entities. The Blacklist and Greylist are revised biannually, and taxpayers are encouraged to monitor these changes, especially the October 2024 update, to understand the implications for interest and royalty deductions, transaction disclosures, and DAC6 reporting obligations.
Petya Dimitrova and Marie Bentley from our firm in Luxembourg Atoz Tax Advisers analyse this change in more detail here.
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