Agefi Luxembourg - avril 2026

AGEFI Luxembourg 16 Avril 2026 Économie & Tax O n 2 February 2026, theOrganiza- tion for Economic Co-operation andDevelopment (“OECD”) published anupdated edition of the Manual onEffectiveMutualAgreement Procedures (“2026MEMAP”), provi- ding revised guidance on the conduct ofMutualAgreement Procedures (“MAPs”). The up- date represents an important step in the continued effort to further improve international tax dispute resolution. For Luxembourg—a jurisdiction where cross-border structures form an integral part of the economic and tax framework and rely extensively on treaty-baseddispute resolution— the2026MEMAPprovidesarelevantreferencetoas- sess existing practice. It also has implications for taxpayers, and for Luxembourg’s positioningwithin the international taxdispute resolution landscape. Understanding the 2026MEMAP and its key enhancements TheMEMAPservesastheOECD’spracticalreference ontheapplicationofMAPsasforeseenunderdouble tax treaties, most commonly in linewithArticle 25 of theOECDModel TaxConventionon Income andon Capital. The 2026MEMAP constitutes the first com- prehensive update of the MEMAP since its original publication in2007, andreflects the significant evolu- tion of international tax dispute resolution and the broader tax environment over the past twodecades. Although theMEMAPremainsnon-binding, its role hasevolvedsignificantly,drawingonextensiveMAP experience, peer-review findings and input from bothcompetent authorities andbusiness representa- tives. In this context, the 2026 MEMAP introduces severalkeyenhancementsaimedatstrengtheningthe practical functioning of the procedure. These en- hancements relate, inparticular, to the adoptionof 1/ a lifecycle-based approach to MAP cases, 2/ the ex- pansion and refinement of best practices, and 3/ an increased emphasis on standardization and digital- ization ofMAPprocesses. Firstly,the2026MEMAPfollowsthefulllifecycleofa MAP case, from dispute prevention and pre-MAP considerations through unilateral relief, bilateral ne- gotiations, implementationofMAP agreements and, where applicable, arbitration. Secondly, the 2026 MEMAP includes a comprehen- sivesetoffifty-ninebestpractices (1) developedbycom- petent authorities within the OECD Forum on Tax Administration Mutual Agreement Procedure Forum, drawing on their collective experience and feedback received frombusiness stakeholders. Thirdly, the 2026 MEMAP places greater emphasis onstandardizationandprocesses’ digitalization, en- couraging the use of standardized templates for MAPrequests,communicationsandpositionpapers provided in the manual (2) , as well as increased re- lianceonelectronic exchanges anddigital case-man- agement tools. In addition, the revisedMEMAP provides more de- tailed and operational guidance onMAP arbitration, reflecting its growing role as a backstop mechanism in cases where competent authorities are unable to reach agreementwithin a reasonable timeframe. Taken together, these enhancements signal a shift to- wards a more operational and practice-driven con- ceptionofMAPprocesses and administration. Luxembourg’sMAPFramework: already strongly alignedwith 2026MEMAP’s principles Luxembourg has a long-standing and well-estab- lished framework for the application of MAPs, groundedprimarily in its extensive network of dou- ble tax treaties, fromwhich access to MAPs directly derives. From a domestic perspective, the practical implementationoftheprocedureisgovernedby Cir- culaire du directeur des contributions L.G. - Conv. D.I. n° 601 of 11 March 2021 (the “MAP Circular”), which setsouttheconditionsforaccesstoMAPs,theproce- dural steps applicable to MAP requests, and the in- teraction with local domestic remedies and other dispute resolutionmechanisms. In several respects, Luxembourg’s existing MAP framework already reflects the core principles pro- motedby the 2026MEMAP.Access to theprocedure is interpretedbroadly (3) , time limits for filing requests areclearlydefined (4) andindicativetimelinesandpro- ceduralstepsarealreadyembeddedinadministrative practice (5) . This is evidencedby thepractical function- ing of the system, with 122 requests submitted and 108 cases closed by the Luxembourg competent au- thority in 2024. (6) This alignment is further illustrated by the use of arbitration within the domestic treaty network as a dispute resolution mechanism, both underitsdoubletaxtreatiesandwithintheEuropean Union, notably through the Convention 90/436/EEC on the elimination of double taxation in connection withtheadjustmentofprofitsofassociatedenterprises and the binding tax dispute resolution mechanisms introducedbyDirective (EU) 2017/1852. Against this background, the 2026 MEMAP can be viewed less as a structural change for the country andmore as a reinforcement and systematisationof existingpractice, asmanyof theprinciples it empha- sises are already embedded in the domestic frame- work. Certainaspectsnevertheless remainanchored in domestic law, notably the handling of tax collec- tion during the pendency of a MAP, while others—such as the degree of digitaliza- tion—reflect the current stage of adminis- trative practice. In particular, the renewed focus on stan- dardization and digitalizationmay have practicalimplicationsinthedomes- tic context. Over time, this may support further digital tools or platforms for handling dispute resolution documentation, which may contribute to more streamlined interactions be- tweentaxpayersandtheLuxem- bourg tax authorities in MAP cases.Atthesametime,whilethe MEMAP promotes common formats, it should be noted that Luxembourg-specific requirements con- tinue to apply, with theMAPCircular remaining the primary reference for the preparation and handling ofMAP requests inpractice. With respect to tax collection, the filing or conduct of a MAP does not, in itself, suspend tax collection in Luxembourg. Any suspension must be sought through the applicable domestic remedies, indepen- dently from the MAP process. While the 2026 MEMAP places increased emphasis on themanage- ment of collection issues as a component of effective access to the procedure, it expressly recognises that suchmattersremaingovernedbynationallaw.Inthis respect, the revised MEMAP may encourage reflec- tion on improved coordination between tax dispute resolutionandcollection,butitdoesnotcallintoques- tion the existing domestic framework, which contin- ues to constitute the relevant legal reference. Finally, the consolidation of fifty-nine practical best practices in the 2026MEMAPmay influence the fur- ther evolutionof Luxembourg’sMAP frameworkby contributing to incremental refinements of adminis- trative practice. Implications for Luxembourg taxpayers: amore predictable and efficientMAP journey For taxpayerswith cross-border activities involving Luxembourg, the 2026 MEMAP provides a clearer and more structured reference on howMAP cases are expected tobe conducted inpractice.GivenLux- embourg’s extensive treaty network and the fact that its treaty partners generally adhere to OECD standards, this enhanced procedural guidance is likely to translate into more consistent and pre- dictable interactionsduringbilateral discussions be- tween competent authorities. In addition, the increased emphasis on digital sub- missions and the use of standardized templates is intended to improve the efficiency of dispute reso- lution processes and may facilitate the preparation ofMAP requests pursuant to theMAPCircular, im- prove their completeness at the outset, and reduce procedural exchanges with tax administrations. Over time, this may contribute to more efficient handlingof cases and, potentially, shorter timelines. ThemoredetailedguidanceonMAParbitrationalso has practical implications for local taxpayers.Where applicable under Luxembourg’s tax treaties or within the EU framework, clearer arbitration rules strengthenthecredibilityofdisputeresolutionmech- anisms as a whole. For complex or long-standing cases in which competent authorities are unable to reachanagreement, arbitrationcontinues tooperate as a reliable backstop for the elimination of double taxation,therebyreinforcingtaxcertaintyforaffected taxpayers. Taken together, these developments suggest that the 2026 MEMAP is likely to influence not only how MAP proceedings are conducted, but also how local taxpayersprepareforandengageincross-borderdis- pute resolutionprocesses involvingLuxembourg. 2026MEMAP’s broader strategic impact for Luxembourg Luxembourg’s role as an international financial and holding hubmeans that it is structurally exposed to cross-border tax disputes. Considering this, the countryhas consistentlypositioned itself as aproac- tiveuserofMAPs,aligningitstreatypracticeandad- ministrativeframeworkwithinternationalstandards in order to preserve legal certainty and maintain its attractiveness for multinational enterprise groups. The existing framework, combined with access to EU-level dispute resolutionmechanisms, alreadyre- flects this strategic orientation. In this context, the 2026 MEMAP may further rein- forceLuxembourg’spositionduetoitspotentialtoen- hance the predictability of outcomes and, over time, thespeedofdisputeresolution.Whileremainingnon- binding, theMEMAP thus contributes to amore co- herent international dispute resolution landscape, supportingLuxembourg’scompetitivenessasajuris- diction committed to effective tax dispute manage- ment and cross-border tax certainty. Conclusion The 2026MEMAP represents a significant evolution in the international taxdispute resolution toolkit. The manual’semphasisonpracticalbestpractices,digital- ization,andarbitrationreflectsthegrowingcomplex- ity of global tax matters and the pressing need for reliablemechanisms tomanage them. ForLuxembourg,the2026MEMAPshouldprimarily be seen as a reinforcement of principles that are al- ready well established in practice. By leveraging the MEMAP’sclarifiedguidance,bothcompetentauthor- itiesandtaxpayerscouldstrengthentheirapproachto managing tax uncertainties and enhance confidence in the international tax system. Alessia ECCHER Manager, International Tax and Transaction Services (ITTS) Eduardo MEDINA, Partner, International Tax and Transaction Services (ITTS) EY Luxembourg 1) 2026MEMAP,AnnexA. List of best practices in theMEMAP. 2) 2026MEMAP,Annex C. Templates for theMAP process. 3)MAPCircular, Section 2.3. 4)MAPCircular, Section 3.2. 5)MAPCircular, Sections 3.3 to 3.6. 6) LuxembourgMinistry of Finance -Administration of Direct Taxes, AnnualActivity Report 2024, Section InternationalActivities. The 2026 MEMAP: Implications for Luxembourg’s MAP landscape L e 18mars 2026, laCom- mission européenne a présenté sa proposi- tionEU Inc., une réforme majeure destinée à transfor- mer le paysage entrepreneu- rial enEurope. Ce nouveau cadre juridique facultatif vise à simplifier la création et la gestiondes entreprises à l'échelle de l'Union, en ré- duisant une fragmentation jugée pénalisante pour l'in- novation et la croissance. Aujourd'hui, les entrepreneurs européensdoiventnaviguerentre 27 systèmes juridiques nationaux et plus de 60 formes de sociétés différentes. Cette complexité entraînedesdélais,descoûtssup- plémentaires et constitue un frein à l'expansion des entreprises au sein du marché unique. Avec EU Inc., la Commission propose un ensemble unique de règles har- moniséesquelesentreprisespour- ront adopter volontairement, évi- tant ainsi de devoir s'adapter à plusieurs régimes nationaux. La présidente de la Commission, Ursula von der Leyen (photo), soulignel'enjeu«faciliterledémar- rage et la croissance » des entre- prises et ambitionne de construire « une Europe un marché » d'ici 2028. Concrètement, le dispositif permettra de créer une entreprise enligneen48heures,pouruncoût inférieurà100euros,sansexigence minimale de capital. L'un des piliers de la réforme repose sur la numérisationcomplètedesprocé- dures. Les entreprises pourront effectuer toutes leurs démarches via une interface unique euro- péenne reliant les registres natio- naux. À terme, un registre central de l'UEpourrait êtremis en place, permettant de simplifier encore davantagelesobligationsadminis- tratives,notammentenmatièrefis- cale et de TVA. Au-delà de la simplification, EU Inc.viseàrenforcerl'attractivitéde l'Europe pour les investisseurs et les talents. Les entreprises bénéfi- cieront de procédures allégées pour lever des fonds, transférer des actions ou encore mettre en place des plans de stock-options à l'échelleeuropéenne.Cesmesures sontparticulièrementimportantes pourlesstart-upsinnovantes,sou- vent confrontées à des obstacles réglementaireslorsqu'ellessouhai- tent se développer rapidement. La réforme prévoit également des dispositifs facilitant le rebond entrepreneurial. Des procédures d'insolvabilité simplifiées et entiè- rement numériques permettront aux fondateurs de liquider plus facilement une entreprise et de relancer de nouveaux projets, encourageant ainsi une culture de l'innovationetdelaprisederisque. Pour Henna Virkkunen, il s'agit d'une« révolutionpragmatique» face à un marché « trop frag- menté ». De son côté, Stéphane Séjourné évoque une « grande simplification » mettant fin à des années de complexité adminis- trative. La commissaireEkaterina Zaharieva insiste quant à elle sur un objectif clair « faire de l'UE le meilleur endroit pour créer et développer une entreprise ». Malgré cette volonté de simplifi- cation, la Commission insiste sur le maintien de garanties solides. Lesrèglesnationalesenmatièrede droit du travail et de protection socialecontinuerontdes'appliquer pleinement, afin d'éviter toute dérégulation ou concurrence déloyale entre États membres. En parallèle, la Commission a pré- sentéplusieurs initiatives complé- mentaires pour accompagner ce nouveau cadre. Celles-ci incluent des mesures visant à améliorer l'accèsaufinancement,àsimplifier la fiscalité des entreprises et à ren- forcerlanumérisationdesinterac- tions entre entreprises et adminis- trations. Une réflexion est égale- ment en cours sur le télétravail transfrontière pour les entreprises innovantes. La proposition va désormais être examinée par le Parlement euro- péenetleConseil.LaCommission espère parvenir à un accord d'ici la fin de l'année 2026, marquant une étape clé vers une intégration économique plus poussée. Avec EU Inc., l'Union européenne entend créer un environnement plus simple, plus rapide et plus attractifpourlesentreprises.Sielle estadoptée,cetteréformepourrait constituer un tournant pour le marché unique, en favorisant l'in- novation, en retenant les talents et en renforçant la compétitivité européenne à l'échellemondiale. Source : Commission européenne Lancement de EU Inc. Faciliter la vie des entreprises dans l’Union européenne ©Commissioneuropéenne