Minister of Finance, Pierre Gramena;
Luxembourg's Ministry of Finance has published its 2019 activity report, with 400+ pages covering its work and highlights during the year which contains numerous infographics and photographs which illustrate key events.
At ministerial level, the report provides an update on the 18 bills tabled in 2019, e.g. the transposition of the directive on the fight against 'tax evasion ATAD II (Anti-Tax Avoidance Directive II), as well as the measures taken in the fight against money laundering and the financing of terrorism with, in particular, the transposition of the 5th anti-money laundering directive. 2019 was also marked by the transposition into national law of the Multilateral Convention for the implementation of measures relating to tax treaties to prevent the erosion of the tax base and the transfer of profits (BEPS).
The report also reviews activities related to the development and promotion of the financial centre in Luxembourg. The adoption of the “Blockchain” law made it possible to complete the Luxembourg legal framework to make it even more favorable to the emergence of new financial solutions. The majority of the Minister's trips and missions abroad focused on FinTech and sustainable finance, two priority subjects in the diversification of the financial centre.
Finally, in terms of public finances, 2019 was a special year due to the adoption of two budget laws, namely the 2019 budget law, postponed following the 2018 legislative elections, and the budget law 2020. In this context, it can be underlined that the execution of the 2019 budget will make the central administration close again to break even, as in 2018.
At the level of the administrations under supervision, the report reviews the activities of the Administration of Direct Contributions (ACD), which has recruited thirty new agents and has continued its efforts in the area of digitalisation. In 2019, the ACD collected some €10.614 billion in direct taxes, which is a new all-time high. Within the framework of international information exchange mechanisms, the ACD exchanged and received more than 3 million reports. A significant decrease in the number of advance rulings requested from the ACD was also noted in 2019. While in 2018, the administration processed 148 requests, the year 2019 was the subject of 95 requests, of which 70 were favorably notified.
With regard to the Registration, Domains and VAT Administration (AEDT), 2019 was marked by the appointment of two new deputy directors and the creation of an inheritance office in Esch. The AEDT has also seen its role strengthened in the fight against money laundering and the financing of terrorism in sectors other than the financial sector and self-regulating professions.
The report also details the changes that occurred in 2019 within the Cadastre and Topography Administration (ACT). With the new management which took office from 1 January 2019, the opportunity was taken to adapt the organisation and the internal functioning of the administration. During 2019, numerous efforts were made to update the data managed by the administration, at the geographic, topography and land levels. In addition, special emphasis was placed on improving the accessibility of this data to the public. The national topographic databases have also been made more sophisticated, by a three-dimensional visualisation.
As for the activities of the Customs and Excise Administration (ADA), the report highlights efforts to set up the Luxembourg Customs Clearance System (LUCCS). During the year, the administration’s automation and digitization initiatives also helped make its services more efficient and effective. Particular attention has also been paid to the protection of personal data.
For the State Treasury, the year 2019 was marked by the issue in November of a loan at an interest rate of -0.247%, to refinance in advance a loan maturing in May 2020. It is the first time that Luxembourg has benefited from a loan at a negative interest rate.
