Luxembourg: Transfer pricing has become a key focus of tax authorities

Tax Insights ()
Transfer pricing has become a hot topic in Luxembourg over the last three years. Domestic transfer pricing regulations aimed at intra-group financing activities have been followed by a recent transfer pricing court case scrutinizing the arm’s length nature of the interest rate charged by a Luxembourg company.

In addition, the increased attention given by the Luxembourg tax authorities to transfer pricing was reiterated recently by the new Luxembourg Government who plans to implement additional transfer pricing rules in the upcoming years.