In an increasingly interconnected and uncertain global economy, tax certainty remains essential for both multinational enterprises (MNEs) and tax administrations. Early coordinated engagements help prevent disputes, reduce duplication, and ensure consistent treatment across jurisdictions. Multilateral risk assessment and cooperative compliance programmes have therefore become key tools in promoting transparency and trust.
Luxembourg Inland Revenue is taking part today in the OECD Tax Certainty Day 2025 in Paris. This is an opportunity to reaffirm ACD's commitment to promoting tax certainty, cooperation, and transparency in international taxation through its involvement in two flagship initiatives:
- The European Trust and Cooperation Approach (ETACA) - Pilot 2
Luxembourg is proud to announce its participation in the second pilot phase of ETACA, an initiative led by the European Commission to foster multilateral cooperation and preventive risk assessment among EU Member States. ETACA Pilot 2 allows MNEs to voluntarily engage in a high-level, multilateral transfer pricing risk assessment with participating EU tax administrations. The goal is to ensure consistent outcomes and provide practical tax certainty.
- The OECD's International Compliance Assurance Programme (ICAP)
ICAP is a voluntary, multilateral risk assessment and assurance process designed to help MNEs gain early comfort about their tax compliance risks. It allows participating tax authorities to review certain cross-border transactions using existing documentation, including Country-by-Country Reports. Luxembourg has actively participated in ICAP since its inception in January 2018.
If you would like more information about these programmes, or to find out which one would best suit your organization, please email us ICAP@co.etat.lu or visit the following internet sites: