Luxembourg signs OECD tax convention

On 29 of May Luxembourg, along with Austria, Singapore and Saudi Arabia, signed the OECD convention on Mutual Administrative Assistance in Tax Matters.

Finance Minister Luc Frieden commented that “the signature of the convention on Mutual Administrative Assistance in Tax Matters is an important step for Luxembourg. It shows our commitment to implement the principle of automatic exchange of information which is however only efficient if it is implemented on a global level.”

The minister also pointed out that the automatic exchange of information could only succeed if a level playing field is established between the international financial centres. The initiative is only the latest in a series of moves to reform Luxembourg’s banking secrecy and to open up to international exchange of information.

The OECD convention is designed to act as a model for future negotiations on bilateral cooperation on fiscal matters. It was initially drafted by the European Council and the OECD.