The law relating to country-by-country ("CbC") declaration obligations (the "Law") was published on 27 December 2016 and entered into force last week.

The Law transposes EU Council Directive 2016/881 of 25 May 2016 (the "Directive"), which modifies the EU Council Directive 2011/16/UE relating to mandatory automatic exchange of information in the field of taxation. The Directive implements the provisions of action 13 of the Organisation for Economic Co-operation and Development's action plan in relation to base erosion and profit shifting ("BEPS"). As such, it extends the automatic exchange of information provisions in Luxembourg by including CbC declaration requirements into local law.

The main elements of the Law are summarised here.