Luxembourg Deemed Fully Compliant By OECD

by Ulrika Lomas, Tax-News.com, Brussels

13 July 2009

Luxembourg has revised its double tax convention with Norway to include provisions for the exchange of information in tax matters. The agreement brings the number of OECD model agreements it has concluded to twelve, ranking Luxembourg as a jurisdiction that has 'substantially implemented' the internationally agreed standard in this area.

As a consequence, the Progress Report initially published by the OECD Secretariat on April 2, 2009, in conjunction with the G20 has been updated, to move Luxembourg into the category of ‘Jurisdictions that have substantially implemented the internationally agreed tax standard’.

Having withdrawn its reservation to the OECD standard on exchange of information in March 2009, Luxembourg has shown rapid progress in updating its treaty network, noted the OECD in a statement. Further negotiations are under way to update the exchange of information provisions in Luxembourg’s bilateral treaties.

Welcoming the recent signings, OECD Secretary-General Angel Gurría said: “I commend Luxembourg for its swift implementation of the OECD standards on exchange of information. In three months, Luxembourg has turned into reality its commitment to fully cooperate in tax matters. I would like to congratulate Minister Luc Frieden for his leadership in this process”.

He further noted that in correspondence with the Luxembourg government, the jurisdiction confirmed that it intended to continue the process of negotiating OECD model agreements.

Praising this approach, Gurría emphasised that while the threshold of 12 signed agreements is a good indicator of progress, “this should not be seen as just a numbers game. The threshold is not a ceiling. This is a dynamic process.”

“Luxembourg has shown that countries are increasingly prepared to enter into high quality agreements and to extend the network of treaties which meet the OECD standard,” Gurría said, adding: “The process is working and I look forward to other countries following the example that Luxembourg has set.”

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