Luxembourg Cabinet Approves Draft Legislation for Implementation of EU Anti-Tax Avoidance Directive

On 15 June 2018, the Luxembourg Cabinet approved draft legislation providing measures for the implementation of the EU Anti-Tax Avoidance Directive (ATAD). The measures of the draft include:

• New interest deduction restriction rules that limit the deduction of net interest expense to 30% of EBITDA, with grandfathering provision for loan agreements entered into before 17 June 2016;
• Updated exit taxation rules, including that payments may be made in installments over five years;
• An updated gene…