Luxembourg - New Tax Rules for Intra-Group Financing in Luxembourg
- A. Taferner; M. Schmitz
- European Taxation, 2011 (Volume 51), No 9/10
- 5 August 2011
In this note, the authors discuss two administrative circulars on the tax treatment of intra-group financing transactions issued by the Luxembourg tax authorities in January and April 2011, which clarify the application of the OECD Transfer Pricing Guidelines to debt-funded intra-group financing activities, list conditions that need to be met in order for a taxpayer to obtain a binding advance pricing agreement and provide for a grandfathering period for existing structures.