The final preparations to implement the Foreign Tax Compliance Act in Luxembourg are being made by the authorities. The law is in the final stages of approval from the legislative bodies and after the Parliament approves it, it will be revised by the tax authorities. It is expected that the FATCA will enter into force in June 2015. The implications will be notable for foreign companies operating both in the United States and in Luxembourg.
Luxembourg is a European country that is not balling with economic hardships. Its prosperity can be attributed largely to the financial sector, an important contributor to the economy. However, employees in Luxembourg are divided into two major categories: the high-income individuals and the poor earners. Experts believe that this might be attributed to the expensive use of temporary employment contracts in Luxembourg.