Luxembourg firmed up the "arm's length principle" on 1 January 2017. While industry players have been caught off guard, they are now analysing the new Transfer Pricing rules and examining how to implement them. Watch the interview of Loek de Preter, PwC Luxembourg Transfer Pricing Leader, commenting on how the market reacted and how to comply.
Luxembourg announced on 27 December it would tighten its rules on intra-group financing. These new measures, entering into force on 1 January 2017, firm up the "arm's length principle". In other terms, financing between different units of the same company should be carried out as if they were unrelated firms. We interviewed Loek de Preter, our Transfer Pricing Leader, to understand what is at stake for Luxembourg entities.
The basic purpose of the Transfer Pricing law is to make sure that the transaction between related parties is at arm's length price ('Market price'). Now that we have basic idea about TP, discover what it means for you, what happened in Luxembourg and more.