U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

99–112 

" ! SENATE 

111TH CONGRESS

2d Session 

TREATY DOC. 

2010

111–8 

PROTOCOL AMENDING TAX CONVENTION WITH 

LUXEMBOURG 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE GRAND DUCHY OF LUXEMBOURG FOR 

THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION 

OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME 

AND CAPITAL, SIGNED ON MAY 20, 2009, AT LUXEMBOURG 

(THE ‘‘PROPOSED PROTOCOL’’) AND A RELATED AGREEMENT 

EFFECTED BY THE EXCHANGE OF NOTES ALSO SIGNED ON 

MAY 20, 2009 

NOVEMBER 15, 2010.—Treaty was read the first time, and together with 

the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate 


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LETTER OF TRANSMITTAL 

THE WHITE HOUSE, 

November 15, 2010. 

To the Senate of the United States: 

I transmit herewith, for the advice and consent of the Senate to 

its ratification, the Protocol Amending the Convention between the 

Government of the United States of America and the Government 

of the Grand Duchy of Luxembourg for the Avoidance of Double 

Taxation and the Prevention of Fiscal Evasion with Respect to 

Taxes on Income and Capital, signed on May 20, 2009, at Luxembourg (the ‘‘proposed Protocol’’) and a related agreement effected by 

the exchange of notes also signed on May 20, 2009. I also transmit 

for the information of the Senate the report of the Department of 

State, which includes an Overview of the proposed Protocol and related agreement. 

The proposed Protocol and related agreement provide for more 

robust exchange of information between tax authorities in the two 

countries to facilitate the administration of each country’s tax laws. 

They generally follow the current U.S. Model Income Tax Convention and the Organization for Economic Cooperation and Development standards for exchange of tax information. 

I recommend that the Senate give early and favorable consideration to the proposed Protocol and related agreement and give its 

advice and consent to their ratification. 

BARACK OBAMA. 


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LETTER OF SUBMITTAL 

DEPARTMENT OF STATE, 

Washington, August 3, 2010. 

THE PRESIDENT, 

The White House. 

THE PRESIDENT: I have the honor to submit to you, with a view 

to their transmission to the Senate for advice and consent to ratification, the Protocol Amending the Convention between the Government of the United States of America and the Government of the 

Grand Duchy of Luxembourg for the Avoidance of Double Taxation 

and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed on May 20, 2009, at Luxembourg (the 

‘‘proposed Protocol’’) together with a related agreement effected by 

exchange of notes also signed on May 20, 2009. The proposed Protocol and related agreement were negotiated to bring the existing 

income tax Convention with Luxembourg (the ‘‘existing Convention’’) into closer conformity with current U.S. tax treaty policy regarding the exchange of tax information; and in recognition of the 

importance of the United States’ economic relations with Luxembourg. I recommend that the proposed Protocol be transmitted to 

the Senate for its advice and consent to ratification. 

The proposed Protocol and related agreement provide for more 

robust exchange of information between tax authorities in the two 

countries to facilitate the administration of each country’s tax laws. 

They generally follow the current U.S. Model Income Tax Convention and the Organization for Economic Cooperation and Development standards for exchange of information. An overview of key 

provisions of the proposed Protocol is enclosed with this report. 

The proposed Protocol is self-executing. The Department of the 

Treasury and the Department of State cooperated in the negotiation of the proposed Protocol and related agreement, and the Department of the Treasury joins the Department of State in recommending that the proposed Protocol and related agreement be 

transmitted to the Senate as soon as possible for its advice and 

consent to ratification. 

Respectfully submitted. 

HILLARY RODHAM CLINTON. 

Enclosures: As stated. 


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VI

OVERVIEW

The proposed Protocol to amend the income tax Convention with 

Luxembourg (proposed Protocol) and the related agreement effected 

by exchange of notes were negotiated to bring the existing Convention, signed in 1996 (existing Convention), into closer conformity 

with current U.S. tax treaty policy regarding exchange of information. There are, as with all bilateral tax conventions, some minor 

variations from the language of the U.S. Model Income Tax Convention. In the proposed Protocol and related agreement, these 

minor differences reflect particular aspects of Luxembourg law and 

treaty policy. However, the proposed Protocol and related agreement generally follow the current U.S. Model Income Tax Convention and the Organization for Economic Cooperation and Development standards for exchange of tax information. 

Exchange of information 

The proposed Protocol replaces the existing Convention’s tax information exchange provisions with updated rules that are consistent with current U.S. tax treaty practice. The proposed Protocol 

allows the tax authorities of each country to exchange information 

relevant to carrying out the provisions of the agreement or the domestic tax laws of either country. Among other things, the proposed Protocol would allow the United States to obtain information 

from Luxembourg whether or not Luxembourg needs the information for its own tax purposes, and provides that requests for information cannot be declined solely because the information is held by 

a bank or other financial institution. The proposed related agreement effected by exchange of notes sets forth agreed understandings between the parties regarding the updated provisions on 

tax information exchange, including that: 

• the United States and Luxembourg will ensure that their respective competent authorities have the authority to obtain and 

provide upon request information held by banks and other financial 

institutions and information regarding ownership of certain entities; and 

• information shall be exchanged without regard to whether the 

conduct being investigated would be a crime under the laws of the 

requested State. 

Entry into force 

The proposed Protocol would enter into force once both the 

United States and Luxembourg have notified each other that their 

respective applicable procedures for ratification have been satisfied. 

It would have effect with respect to requests made on or after the 

date of entry into force with regard to tax years beginning on or 

after January 1, 2009. The related agreement effected by exchange 

of notes would enter into force on the date of entry into force of the 

proposed Protocol and would become an integral part of the Convention on that date. 


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