On 19 December 2019, the Luxembourg Parliament passed the law implementing the EU Directive 2017/952 of 29 May 2017 amending Directive (EU) 2016/1164 relating to hybrid mismatches with third countries (ATAD 2). ATAD 2 which modifies and replaces article 168ter of the Luxembourg Income Tax Law, largely follows the text of the EU Directive and covers hybrid financial instrument mismatches, hybrid entity or permanent establishment mismatches hybrid financial instruments mismatches, hybrid transfers, imported mismatches and tax residency mismatches. The provisions of ATAD 2 will apply as from 1 January 2020 except for the provisions relating to reverse hybrids which will apply as from 1 January 2022.
The Luxembourg Parliament also passed the 2020 Budget Law confirming the expiry of the tax rulings issued by the Luxembourg tax authorities before 1 January 2015 after the end of the 2019 fiscal year. Please see our relevant previous blogpost here and our recommendation that the impact of the expiry of any ruling be examined, including whether it would be appropriate to make use of the ability that is given in the law to seek an extension to any particular tax ruling.