Executive summary

On 8 January 2021, the Luxembourg Tax Authorities published a Circular¹ clarifying certain technical aspects of the interest limitation rules introduced in the Luxembourg legislation by law in 2018 (the Law), implementing the European Union (EU) Anti-Tax Avoidance Directive 2016/1164 (2016) (ATAD).² These rules limit the deductibility of taxpayers’ borrowing costs to the high…