The Luxembourg government proposes to reform certain aspects of
the tax assessment and tax litigation procedures, as well as
certain documentation obligations, in a bill of law dated 28 March
2023. This notably affects advance pricing agreements (APAs),
mutual agreement procedures (MAPs) and transfer pricing
documentation. More importantly, some of the proposed changes will
impact the rights of taxpayers to challenge tax assessments.
Transfer pricing developments
Bilateral and multilateral APAs
Apart from the introduction of an administrative fee ranging
between EUR 10,000 and 20,000, a bilateral or multilateral APA
would be concluded within the framework of a MAP under the
applicable tax treaty. This clarifies the legal basis for these
APAs to be binding on the Luxembourg tax authorities. Further
regulations will detail the procedure for obtaining such APAs.
