Luxembourg passes law on non-public CbC reporting

13 December 2016, the Luxembourg parliament passed a law on non-public country-by-country (CbC) reporting to transpose the EU Directive 2016/881 of 25 May 2016 into domestic law. The law, when gazetted, will apply from 1 January 2016.

CbC reporting applies to multinational enterprises (MNEs) whose total consolidated group revenue exceeds €750 million during the previous fiscal year. Qualifying Luxembourg group entities will have to comply with filing and notification obligations. 

Finance minister Pierre Gramegna confirmed that Luxembourg would not support the initiative of the EU Commission for public CbC reporting, provided there is no consensus at the OECD level.

In April, the EU Commission proposed an amendment to Accounting Directive 2013/34/EU with the aim to introduce public CbC reporting for MNE groups operating in the EU with global revenues exceeding €750 million. The Commission believed that this amendment could be passed in the Council of the EU with a qualified majority but the EU Legal Service gave a written opinion on 11 November that the proposal requires unanimous consent from the Council.