Are you a resident in the European Union (outside the Grand Duchy of Luxembourg)?

On 1 January 2015, Luxembourg has seen the end of the transitional tax scheme provided by the European Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, which was transposed into Luxembourg legislation by the amended law of 21 June 2005.

Since that date, interest income, which until then had been subject to a European withholding tax (WHT) of 35%, are no longer taxed, but are paid in full to the customer. However, this European-wide withholding tax, which was provided for by the aforementioned transitional system, has been replaced by the automatic exchange of information to the tax authorities of the country of the customer’s residence.

With respect to this new harmonised system, it is important to note that:

  • the exchange of information occurs annually, the first time in the first quarter of 2016, and covers the interest income received over the course of the previous year;

  • the exchange involves information regarding interest income on savings, which had been subject to the European withholding tax;

  • the exchange is not final in nature, such that all relevant income must be mentioned on the tax return the customer fills out in their country of residence in accordance with the legal provisions in force.

Further information: « Information with regard to the automatic and mandatory exchange of information in the field of taxation »

In view of the fact that the customer is solely responsible for meeting their tax obligations, and given that this information is intended to be merely informative on behalf of Spuerkeess, it is recommended that the customer submits information and statements of account received by the Bank for assessment to their tax advisor in their country of residence.