The key changes to the Luxembourg fiscal landscape that were explored at the conference include the tax implications for German residents of the private use of company cars, the VAT increase scheduled for 2015 and the international pressure on local taxation and the exchange of information (BEPS, cases of double non-taxation, tax reporting, etc.).

The implications of BEPS and the EU Code of Conduct for Luxembourg
Faced with ongoing pressure from the European authorities, particularly with regard to tax transparency, Luxembourg needs to adapt and come up with solutions to meet its obligations in this area while remaining a competitive business centre for foreign companies.

Luxembourg's approach to the automatic exchange of information needs to be reconsidered if the country wants to avoid finding itself on a black list of non-cooperative countries. Georges Deitz, former Tax Partner at Deloitte Luxembourg, is nevertheless optimistic about the Luxembourg government's ability to grasp the importance of these issues. For example, a number of working groups have already been created to examine the different topics highlighted by the OECD.

VAT: the taxation of company cars in Germany and the increase in main VAT rates in Luxembourg
This topic is not new: the German government intends to tax its residents' private use of company cars provided by their Luxembourg employers. Luxembourg has responded by asking the EU VAT Committee to give its opinion on the subject. However, this opinion will not be legally enforceable. Germany may therefore carry on its intentions in this regard. Other countries may also follow suit.

Moreover, the increase in VAT rates scheduled for January 2015 is raising a number of concerns. The increase, which will apply to all current tax rates, apart from the 3% tax rate, requires forward planning in order to minimise implementation costs and the impact of the rise, especially for transactions between parties that are taxable for VAT and non-taxable  for VAT (or parties with a reduced right to recover input VAT).

Should companies reduce their profit margins to absorb the increase? Should they invoice as much as possible for services already rendered before the end of the year? The implications will need to be analysed on a case-by-case basis.

Welcome clarifications on the minimum tax applicable to commercial companies
“The circulars issued recently have helped us to better understand how the minimum tax will apply in a number of complicated situations,” explains Jean-Philippe Bill, leader of the tax team at FGL. The minimum tax is a subject that requires accountants and tax experts to carry out appropriate monitoring, particularly with regard to the possibility to credit the minimum tax previously paid in 2014 and subsequent years. There are also solutions for reducing the overall costs involved for a group of companies, one of which is through fiscal unity.

FGL lead partner Jean-Philippe Foury’s call for Luxembourg to “anticipate and coordinate itself to deal with the changes” was the closing statement of this year's conference, which also saw the organisation unveil its new visual identity.