Within three months following the notification of the tax assessment (for both direct and indirect taxes)
First stage: This is a compulsory administrative procedure for both direct and indirect taxes (average time between six months and one year for both direct and indirect taxes).
Judicial procedure:
- In the case of a negative decision at the administrative stage, the taxpayer has the right to file a judicial claim within three months following the notice of the administrative decision.
- In the absence of a response at the administrative stage within six months, the taxpayer has the right to file a juridical claim without any statutory deadline.
- The taxpayer/claimant has the right to appeal the decision rendered by the lower courts for both direct and indirect taxes.
MAPs and, ultimately, arbitrations are only available to solve specific international double taxation issues involving Luxembourg and other jurisdictions.
a. Start: MAPs should generally be initiated by a taxpayer within three years from the first notification of the action resulting in a taxation not in accordance with the provision of the relevant double tax treaty.
b. onduct of the proceedings: MAP proceedings are independent from national proceedings. There is no possibility to request a suspension of tax collection (sursis à exécution) in Luxembourg during the MAP proceedings.
c. Completion of proceedings: If the Luxembourg tax authorities cannot resolve the case unilaterally, they will take it up with their counterpart in the other contracting state. MAP decisions will be binding if the taxpayer directly affected accepts the decision and renounces the right to any other national remedy.
d. Other actions: Certain double tax treaties concluded by Luxembourg provide for the possibility to initiate a binding arbitration between Luxembourg and the other contracting state for unresolved double taxation issues. Unresolved cases involving EU Member States can be submitted to a specific binding arbitration procedure.