EU Commission requests LUXEMBOURG to amend discriminatory tax rules concerning securitisation enterprises

The Commission decided today to send a letter of formal notice to Luxembourg for taxing more heavily securitisation enterprises with taxable operations in Luxembourg whose statutory seat is in another EU or EEA Member State.

The Commission considers that the legislation at issue is not compatible with the freedom of establishment of the TFEU and the EEA (Articles 49 TFEU and 31 EEA).

If Luxembourg does not act within the next four months, the Commission may send a reasoned opinion to the Luxembourgish authorities (case number 2020/4015).

Daniel Ferrie