To print this text, all you want is to be registered or login on Mondaq.com.
REPORTING DEADLINE FOR RAIFS OR AIFS THAT CANNOT BENEFIT FROM
THE EXEMPT CIV STATUS: 30 JUNE 2022
The frequent reporting customary
(“CRS”), which has been carried out in
Luxembourg by the legislation of 18 December 2015, has launched an
automated change of data referring to monetary accounts in
tax issues with the Member States of the European Union and the
different associate jurisdictions of Luxembourg.
On 4 April 2022, the Luxembourg tax authorities
(“ACD”) launched an replace of their
often requested questions (“FAQ”) on
the CRS. The two added questions (2.3 and 2.4) present an inventory of
Investment Entities for CRS functions and make clear that unregulated
entities can’t profit from the exempt Collective Investment
Vehicle (“CIV”) standing.
The predominant level of consideration is that various funding funds
(“AIFs”) or reserved various
funding funds (“RAIFs”) that
beforehand certified as Non-Reporting Financial Institutions
(“FIs”) primarily based on the exempt CIV standing
beneath CRS at the moment are being handled as Reporting FIs and should subsequently
file a (nil) report on 30 June 2022 for the yr 2021 in addition to a
retroactive (nil) report for the yr 2020 to keep away from any
Finally, one ought to recall that any entity resident in
Luxembourg or any department positioned in Luxembourg ought to decide its
FATCA or CRS standing on a case-by-case foundation and help its
classification by a correct evaluation of its authorized and factual
state of affairs.
I. List of Investment Entities
Question 2.3 of the FAQ offers a non-exhaustive listing of
Luxembourg entities which fall in precept throughout the scope of the
definition of an Investment Entity, which can be thought of as
Reporting Financial Institutions for CRS functions, as follows:
- any enterprise for collective funding topic to Part I or
II of the amended legislation of 17 December 2010 referring to undertakings
for collective funding;
any specialised funding fund topic to the amended legislation of
13 February 2007 referring to specialised funding funds;
any enterprise capital firm ruled by the amended legislation of 15
June 2004 referring to enterprise capital firms (SICAR);
any securitisation enterprise topic to the authorisation and
supervision of the CSSF in accordance with the amended legislation of twenty-two
March 2004 referring to securitisation;
any RAIF falling throughout the scope of the amended legislation of 23 July
2016 referring to reserved various funding funds;
any AIF whose administration falls throughout the scope of the amended
legislation of 12 July 2013 referring to various funding fund
any pension fund ruled by the amended legislation of 13 July 2005
referring to establishments for occupational retirement provision in
the type of SEPCAV and ASSEP;
any pension fund ruled by the amended Grand-Ducal Regulation
of 31 August 2000 implementing Article 26, paragraph 3, of the
amended legislation of 6 December 1991 on the insurance coverage sector and relating
to pension funds topic to the prudential supervision of the
Commissariat aux assurances;
any administration firm topic to half IV of the amended legislation of
17 December 2010 referring to undertakings for collective
any supervisor of different funding funds ruled by the
amended legislation of 12 July 2013 referring to managers of different
funding funds; and
any funding agency ruled by the amended legislation of 5 April 1993
referring to the monetary sector which carries out any of the
following actions: (i) execution of orders on behalf of shoppers,
(ii) portfolio administration.
Following the discharge of this listing, a evaluate of the
entity’s classification needs to be undertaken to make sure
compliance with CRS reporting obligations.
II. RAIFs or AIFs can’t profit from the Exempt CIV standing
(i.e. the Non-Reporting FI standing) beneath CRS
Luxembourg entities which qualify as Reporting Financial
Institutions for CRS functions are required to file yearly a 0
report with the ACD within the absence of CRS reportable accounts (so
referred to as “ZeroReporting”). Non-Reporting Financial
Institutions, such because the entities choosing the exempt CIV
standing, are exempt from this nil reporting obligation.
In Question 2.4 of the FAQ, the ACD signifies that unregulated
entities can’t profit from the exempt Collective Investment
Vehicle (CIV) standing, which might solely be chosen by entities which
are themselves topic to the supervision of the CSSF, and provided that
the opposite situations for entry to this standing are met.
Therefore, unregulated entities, resembling AIFs or RAIFs, can’t
go for the exempt CIV standing, contemplating that solely their supervisor
(AIFM) is instantly supervised by the CSSF, and they might be
thought of as Reporting FIs for CRS functions. As a outcome, these
unregulated entities at the moment are required to submit yearly a 0
report back to the ACD within the absence of CRS reportable accounts.
Considering that CRS reporting for the 2021 fiscal yr ought to
be carried out by 30 June 2022, RAIFs and AIFs which used to qualify as
Non-Reporting FIs ought to instantly carry out a evaluate of their
standing beneath CRS to find out their potential new reporting
While RAIFs and AIFs that used to qualify as Non-Reporting FIs
beneath the exempt CIV standing ought to, in precept, haven’t any CRS
reportable accounts, a 0 report needs to be filed by
30 June 2020 with respect to fiscal yr 2021 and fiscal yr 2020
to keep away from any penalties.
How can we assist?
The Tax Law companions and your normal contacts at Arendt are at
your disposal to additional help you on the influence evaluation of
these new obligations. Our devoted FATCA/CRS reporting group at
Arendt Regulatory & Consulting can be accessible that will help you in
the preparation of your forthcoming CRS reporting obligations and
the definition of your FATCA/CRS insurance policies, procedures and
supporting IT options.
The content material of this text is meant to offer a basic
information to the subject material. Specialist recommendation needs to be sought
about your particular circumstances.