The Protocol will be effective for requests for information made on or after the date of entry into force for tax years on or after January 1, 2009.
A new Protocol to the US-Luxembourg tax treaty has entered into force.
Both countries have completed the respective ratification procedures of the Protocol, thus bringing it into force, the Luxembourg Government announced on September 9.
The new Protocol replaces the existing tax treaty’s exchange of information Article. The new Article follows the approach of the US Model Income Tax Treaty and the OECD Model Tax Convention.
The Protocol will be effective for requests for information made on or after the date of entry into force for tax years on or after January 1, 2009.
Pierre Gramegna, Minister of Finance of Luxembourg, commented: “By aligning the convention to the internationally agreed standards of the OECD on the exchange of information on request, this Protocol will help ensure better and simpler cooperation between our tax authorities. It is another common step in the further consolidation of our already excellent financial relations.”
US Ambassador to Luxembourg, J. Randolph Evans, commented: “Luxembourg and the US house the two largest financial centres for investment funds in the world. This Protocol ensures our bilateral tax treaty is in accord with OECD standards for information exchange and improves transparency in the banking sector, marking yet another significant step in our relations as we work toward a secure and prosperous future together.”
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