Last week I heard that the Spanish Tax authorities are not accepting life insurance wrappers registered in Luxembourg until there is an adequate exchange of bank information protocol for tax purposes between the two countries.
I was very pleased to read in the OECD page that last week also, Luxembourg had signed a protocol to its double taxation convention with Denmark. The protocol, which allows exchange of bank information for tax purposes, brings the convention up to the OECD standard. Luxembourg signed similar protocols with France, on 3 June 2009, and the Netherlands, on 29 May 2009.
In addition to these countries, Luxembourg’s tax agreements with Bahrain, India and the United States also meet the OECD standard on exchange of information.
Having withdrawn its reservation to the OECD standard on exchange of information in March 2009, Luxembourg has made significant progress in updating its treaty network in a very short time. Negotiations are also under way with other countries to update the exchange of information provisions in Luxembourg’s bilateral treaties with them.
Welcoming the recent signings, Angel Gurria, OECD Secretary-General said: “ This is very good news. These agreements with six of its key economic partners show that Luxembourg has joined the international drive to combat tax havens and is moving swiftly towards substantial implementation of the OECD standard.”