Common reporting standards (CRS) require automatic exchange of information between jurisdictions. How do we ensure corporate or HNW clients understand what is expected and the implications for their business?

Local financial institutions are well prepared to provide the Luxembourg tax authorities with CRS reporting information.

Clients are slowly integrating the new business parameters, such as actual substance requirements, and have closed treaty shopping mechanisms. They have to accept this new ‘tax way of life’.

From a practical perspective, clients who remain tax compliant in their state of residence in Luxembourg will not suffer from CRS, or more widely from exchanges of information.