The French National Assembly adopted the 4th Amendment to French-Luxembourg double tax treaty!

Arsene Taxand - Real Estate



The French National Assembly adopted the 4th Amendment to French-Luxembourg double tax treaty!
The National Assembly adopted last Thursday the 4th Amendment to French-Luxembourg double tax treaty. The vote of the Senate – which will only be a formality - is scheduled on December 16th.
                                          
The accelerated procedure has been initiated on December 3rd, but its application should be limited. Indeed, even though the vote and the exchanges of ratification instruments occur before the end of the year, the Amendment, regarding the capital gain generated on the disposal of the shares of predominantly real estate companies, will not apply before January 1st, 2017.
 
On the Luxembourg side, the Council of State approved last December 1st the exemption from a second vote, and then ended the constitutional voting process of the 4th Amendment. 
 
 
Arsene Taxand – Real Estate Tax Team