Luxembourg is on the way for automatic exchange of tax information

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Luxembourg is on the way for automatic exchange of tax information Luxembourg has recently adopted a bill approving a series of tax treaties, and has supported a draft law transposing Article 8 of the European Council Directive on administrative assistance in tax matters. The Governing Council of Luxembourg approved the tax treaties with Saudi Arabia, Guernsey, Jersey, the Isle of Man, and the Czech Republic, as well as protocols modifying existing tax treaties with Denmark and Slovenia. The aim of the treaties is to prevent double taxation and strengthen bilateral economic relations. Article 8 of the European Council Directive implies administrative cooperation, as also automatic and mandatory exchange of information for five specific categories of income and capital (income from employment, director’s fees, life insurance products, pensions, and the ownership of and income from immovable property). While there is a tendency to reveal bank secrecy in Europe, Asian countries, and especially Singapore, which is considered to be the Asian Switzerland, abide by strong bank secrecy laws. Singapore remains the most attractive jurisdiction for international business and banking activities.