Thursday, 8 December 2016

Luxembourg Government proposes to formalize transfer pricing legislation

The Luxembourg Government on October 12, 2016, presented a Bill (no.7050) to the Luxembourg Parliament outlining the Government’s 2017 budgetary measures. One article in the Bill sets out new transfer pricing provisions, augmenting the basic arm’s-length rule in force since January 1, 2015 that — formally adopted the OECD standard into Luxembourg law. The proposed new wording follows closely some of the key text of the OECD Transfer Pricing Guidelines — in their 2016 revised form following the BEPS Actions 8-10 Final Report — and thus makes  more explicit the already authoritative status in Luxembourg of these Guidelines. Assuming that the Bill is enacted, the new provision will apply from January 1, 2017.

Source & more info: PwC