[PDF] FATCA TAX ALERT - BDO Luxembourg - Anciens Et Réunions

Why did Luxembourg update the FATCA reporting requirements?

In order to avoid receiving future error messages from the IRS, the Luxembourg tax authorities communicated their intent to update the Luxembourg FATCA reporting requirements as from April 2022 whereby those entities could be reported with their foreign TIN rather than with a US TIN or with “NA” in the absence of a foreign TIN.

When is the deadline to file FATCA and CRS reports?

According to the legal provisions under Luxembourg law, the deadline to file FATCA and CRS reports with respect to the calendar year 2021 is set as 30 June 2022.

What happens if a tax return is not reported in Luxembourg?

This also includes a nil return. If a CRS or FATCA audit by the Luxembourg tax authorities finds non-compliance with due diligence procedures, the maximum penalty of EUR250,000 could apply. And, if reportable accounts are found to be non-reported or under-reported, an additional penalty of a maximum of 0.5% of the non-reported amount could apply.

Are tax authorities monitoring FATCA and CRS status of FIS?

Tax authorities is closely monitoring FATCA and CRS status of FIs. Further to the Section 2.3. of the FAQ (PDF, .8MB) published on 04/04/2022 ( See alert ), we note that the tax authorities are investigating the FATCA and CRS statuses of regulated entities which did not submit FATCA and CRS reports for the past years.