Luxembourg and France have signed a new double taxation treaty (DTT), replacing an existing deal that had been in force since 1958.
According to Delano, Luxembourg’s finance ministry said the new DTT had been completely revamped to include provisions that reflect the standards of the 2017 European Association of Communication Directors’ Model Tax Convention, the development of which Luxembourg actively participated in. It also implements Base Erosion and Profit Shifting minimum standards.
The new treaty likewise provides more effective definitions of the persons covered, permanent establishment, the withholding tax rate paid on dividends from real estate funds and the taxation of employment income.
The Democratic Party’s minister of finance Pierre Gramegna said: "The new convention is basically modernising the current text dating from 1958 and is an innovative instrument that benefits both citizens and businesses on both sides of the border."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Luxembourg and France have signed a new double taxation treaty (DTT), replacing an existing deal that had been in force since 1958.
According to Delano, Luxembourg’s finance ministry said the new DTT had been completely revamped to include provisions that reflect the standards of the 2017 European Association of Communication Directors’ Model Tax Convention, the development of which Luxembourg actively participated in. It also implements Base Erosion and Profit Shifting minimum standards.
The new treaty likewise provides more effective definitions of the persons covered, permanent establishment, the withholding tax rate paid on dividends from real estate funds and the taxation of employment income.
The Democratic Party’s minister of finance Pierre Gramegna said: "The new convention is basically modernising the current text dating from 1958 and is an innovative instrument that benefits both citizens and businesses on both sides of the border."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
