On 14 October 2019, the 2020 Luxembourg Government published its parliamentary bill for its 2020 budget. Amongst the various proposals was one to the effect that tax rulings issued by the Luxembourg tax authorities before 1 January 2015, will no longer be valid after the end of the current tax year 2019. The only valid rulings remaining will be the ones issued under the formal process enacted in 2015 and which are valid for 5 years.
Although the bill needs to go through the usual legislative process and the final law remains to be seen, this particular measure is likely to be adopted. Therefore, taxpayers who at the moment rely on rulings issued before 1 January 2015, should review their structures and the potential tax exposure arising from this measure, in particular taking account of the number of additional tax measures taken by the Luxembourg government over recent years, including those under ATAD 1 and ATAD 2 and consider the possibility of requesting a new ruling.