DAC8 Reporting in Luxembourg: Practical Guide

Luxembourg, as one of Europe's leading financial centres, plays a significant role in the digital asset ecosystem. The Grand Duchy hosts numerous investment funds, fintech companies, and crypto-asset service providers. The Administration des contributions directes (ACD) is expected to administer DAC8 reporting, building on Luxembourg's well-established international information exchange infrastructure. This guide covers the practical aspects of DAC8 reporting for entities in Luxembourg.

National Authority

The Administration des contributions directes (ACD), Luxembourg's direct tax authority, is the competent authority for international exchange of information, including CRS and FATCA reporting. The ACD is expected to receive and process DAC8 reports from crypto-asset service providers. The Ministry of Finance (Ministere des Finances) is responsible for the legislative transposition of the directive.

Submission Requirements

Luxembourg has a modern financial infrastructure, and DAC8 submissions are expected to be handled electronically through established channels.

• Format: Reports should follow the OECD CARF XML schema as required by DAC8. The ACD may publish specific technical guidance, potentially building on its existing CRS XML schema documentation.
• Language: Luxembourg has three official languages: Luxembourgish, French, and German. Tax administration is commonly conducted in French and German. DAC8 XML submissions should follow international standards, but any accompanying correspondence may need to be in French or German.
• Submission channel: The ACD currently uses dedicated file transfer mechanisms for CRS and FATCA reporting. DAC8 submissions may follow a similar approach. The exact portal or transmission method is to be confirmed by the ACD.
• Tax identification: Reporting entities will need a Luxembourg tax identification number (matricule fiscal) to submit reports.

Transposition Status

Luxembourg must transpose the DAC8 directive into national law by December 31, 2025. Transposition is typically achieved through a law (loi) passed by the Chamber of Deputies (Chambre des Deputes). Luxembourg has generally been timely in implementing EU financial and tax directives, given its role as a major financial centre. Reporting entities should monitor the Memorial (Official Gazette) for the publication of the transposing law.

Local Variations

Luxembourg may introduce specific features in its DAC8 implementation:

• Fund industry considerations: Luxembourg's significant fund industry may lead to specific guidance on how DAC8 applies to investment funds and fund managers dealing with crypto-assets.
• CSSF oversight: The Commission de Surveillance du Secteur Financier (CSSF) regulates financial service providers in Luxembourg. DAC8 reporting obligations may be coordinated with CSSF regulatory requirements under MiCA.
• Existing AML framework: Luxembourg has a robust anti-money laundering framework. DAC8 due diligence requirements may be aligned with existing AML/KYC obligations.
• Holding company structures: Given the prevalence of holding structures in Luxembourg, specific guidance may be needed on how DAC8 applies to entities within complex corporate arrangements.

Key Dates

• Transposition deadline: December 31, 2025 (directive must be incorporated into Luxembourg law)
• Data collection begins: January 1, 2026 (reporting entities should start collecting relevant information)
• First reporting period: Calendar year 2026
• First reports due: 2027 (exact date to be confirmed by the ACD; likely aligned with existing CRS exchange timelines)

Practical Tips

• Leverage CRS infrastructure: Luxembourg's well-developed CRS reporting processes can serve as a strong foundation for DAC8 compliance.
• Monitor the ACD website and Memorial: Official guidance and legislation will be published through these channels. Check regularly for updates.
• Engage with the CSSF early: If you are a regulated entity, coordinate your DAC8 preparations with your CSSF compliance obligations.
• Consider fund-specific implications: If you operate or manage investment funds with crypto-asset exposure, seek specific guidance on how DAC8 applies to your structures.
• Maintain multilingual capabilities: Given Luxembourg's multilingual environment, ensure your compliance team can operate in the relevant languages.
• Network with industry peers: Luxembourg's financial industry associations, such as ALFI (Association of the Luxembourg Fund Industry), may coordinate industry responses to DAC8 implementation.

Important Notice

This guide provides general information about DAC8 reporting in Luxembourg. Requirements may change as the directive is transposed into national law. The information presented here should not be considered definitive legal or tax advice. Always consult the Administration des contributions directes (ACD) and the Ministry of Finance for the latest official requirements. For specific compliance questions, seek advice from qualified Luxembourg tax professionals.