The Luxembourg parliament is considering a draft bill 7974 submitted on 9 March 2022 to address the infringement of certain aspects of the interest deduction limitation rules under the EU Anti-Tax Avoidance Directive (ATAD). In particular, the draft bill addresses a reasoned opinion sent by the European Commission on the grounds of incorrect transposition of ATAD in relation to a derogation of the measures limiting the deductibility of interest payments in favor of financial undertakings. ATAD includes an exhaustive list of entities considered as financial undertakings for this purpose. However, Luxembourg also grants the derogation to securitization entities, which are not financial undertakings within the meaning of the ATAD provisions. To address this infringement, the draft bill simply removes securitization entities from the scope of financial institutions as listed in the provisions transposing ATAD into Luxembourg law. As drafted, this will apply with effect from 1 January 2023.