EFA prepared for the upcoming Automatic Exchange of Information under EUSD!

EFA prepared for the upcoming Automatic Exchange of Information under EUSD

As of January 1, 2015, the European Savings Directive (EUSD) will be applied in Luxembourg in accordance with the Luxembourg law dated 25 November 2014 modifying law of June 21, 2005.

The Automatic Exchange of Information will thus be systematically applied on interest payments performed by Luxembourg paying agents made to individuals resident in other EU Member States. Consequently, the current option of a withholding tax permitted by the June 21, 2005 law will be abandoned.

Only transactions with trade date later than December 31, 2014 will be executed under the Automatic Exchange of Information, those with an equal or earlier trade date will continue to be treated under the tax rules of the 2005 law.

For UCITS falling under the scope of the EUSD, EFA recommends that the fund takes appropriate measures in order to inform concerned investors of the upcoming tax changes.

Should you need more information, please do not hesitate to contact your Client Relationship Manager.

The Client Management team