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Luxembourg Says EU's Digital Tax Must Be Lawful

Tuesday, March 13, 2018

Luxembourg Finance Minister Pierre Gramegna has said that any special tax measures against large digital companies should respect European Union law.

Gramegna made the comments during an official visit to Paris earlier this month where he held a series of working meetings with French government counterparts.

"Pierre Gramegna stressed that Luxembourg shares the objective of adapting tax rules to the realities of the digital economy, but believes that any solution to be implemented at European Union level should be compatible with the rules of the European Union," said a statement issued by the Luxembourg Ministry of Finance on March 7.

According to the statement, Gramegna met with OECD Secretary General Angel Gurria during the Paris visit to discuss the organization's work on the taxation of the digital economy in preparation for a ministerial meeting on the matter in May 2018.

The discussions also covered the new double tax treaty between France and Luxembourg, which is due to be signed on the occasion of the state visit of the Grand Duke of Luxembourg to Paris on March 19-21.

The current text of the Franco-Luxembourg tax treaty dates from 1958, and the new convention incorporates OECD standards and BEPS rules, the finance ministry said.