Wroblewski, Pawel
The importance of being capitalized the right debt-to-equity level for intercompany financing in Luxembourg electrónico / Pawel Wroblewski and Marc Rasch
Resumen.
The recent update of the OECD Guidelines provides long-awaited guidance as to how to apply the arm’s length principle in relation to financial transactions. An important element of this guidance covers the debt-and-equity balance from a transfer pricing perspective. From a Luxembourg point of view, absent any official regulations covering thin capitalization and in line with the OECD Guidelines, it is expected that the market practice of 85:15 will no longer be applicable, unless it can be supported by a proper transfer pricing analysis. Non-supported debt-to-equity ratios may lead to a shift in the burden of proof.
PRECIOS DE TRANSFERENCIA
GRUPOS DE EMPRESAS
FINANCIACION
OPERACIONES FINANCIERAS
OPERACIONES SOCIETARIAS
AMPLIACION DE CAPITAL
LUXEMBURGO
Rasch, Marc
International Transfer Pricing Journal 1385-3074 v. 29, n. 1, 2022, p. 67-71
The importance of being capitalized the right debt-to-equity level for intercompany financing in Luxembourg electrónico / Pawel Wroblewski and Marc Rasch
Resumen.
The recent update of the OECD Guidelines provides long-awaited guidance as to how to apply the arm’s length principle in relation to financial transactions. An important element of this guidance covers the debt-and-equity balance from a transfer pricing perspective. From a Luxembourg point of view, absent any official regulations covering thin capitalization and in line with the OECD Guidelines, it is expected that the market practice of 85:15 will no longer be applicable, unless it can be supported by a proper transfer pricing analysis. Non-supported debt-to-equity ratios may lead to a shift in the burden of proof.
PRECIOS DE TRANSFERENCIA
GRUPOS DE EMPRESAS
FINANCIACION
OPERACIONES FINANCIERAS
OPERACIONES SOCIETARIAS
AMPLIACION DE CAPITAL
LUXEMBURGO
Rasch, Marc
International Transfer Pricing Journal 1385-3074 v. 29, n. 1, 2022, p. 67-71