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March 25, 2022
2022-5304

Luxembourg Tax Authorities update XSD schema to allow submission of corrective MDR reports

Executive summary

On 21 March 2022, the Luxembourg Tax Authorities (LTA) announced an update to the Mandatory Disclosure Rules (MDR) XSD schema and User Guide on submitting MDR reports. Such reports are required under implementation of the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive).

Going forward, the new XSD schema allows for the filing of a corrective MDR report as well as an arrangement chart.

Detailed discussion

Intermediaries and relevant taxpayers have two means for submitting reports to the tax authorities:

  1. Manual entry of information: The data for each individual report is entered on an online form located on the MyGuichet platform (the same platform through which tax returns are to be filed) and then transmitted to the LTA.

  2. Drag and drop of a specific XML: XML files are uploaded directly via the MyGuichet platform.

Until now, where corrections to a report that had already been submitted to the LTA were to be made, intermediaries or relevant taxpayers were required to contact the LTA in order for them to delete the initial report so as to enable the filing of a new MDR report, including the desired corrections. As from 30 March 2022, it will be possible to file a corrective report by sending the new XML file or by manually entering the corrections on MyGuichet. Upon filing of a corrective report, care should be taken to indicate that it is a “correction” type report, and all fields must be filled in again, including the Arrangement ID and Disclosure ID that were allocated on the initial filing.

In addition, this new XSD schema integrates specific fields related to the arrangement chart. The arrangement chart, which has to be filed in an XML format, allows, in addition to the narrative description of the arrangement, to detail the logical structure of the arrangement where the intermediary or the relevant taxpayer considers it useful for the understanding of the arrangement. Information such as a description of each entity or individual involved in the arrangement, their ownership percentages, as well as capital and funding may be further detailed in the arrangement chart. This new feature will be available as from 27 April 2022.

Updated XSD, PDF and XML documents, illustrative examples as well as an updated version of the User Guide (in French only) are available on the LTA’s website.[1]

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For additional information with respect to this Alert, please contact the following:

Ernst & Young Tax Advisory Services Sàrl, Luxembourg City

Ernst & Young LLP (United States), Luxembourg Tax Desk, New York

Ernst & Young LLP (United States), Luxembourg Tax Desk, Chicago

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Endnotes

  1. Dispositifs transfrontières devant faire l’objet d’une déclaration - Échanges électroniques - Administration des contributions directes - Luxembourg (public.lu)
 
 

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