Luxembourg Transfer Pricing Documentation Requirements
Luxembourg requires transfer pricing documentation to be available by the tax return date and produced within 30 days of a request, without a transaction-based threshold. A formal Master File and Local File are anticipated under published draft legislation but are not yet the operative obligation.
Requirements at a glance
| Requirement | Threshold | Deadline | Deadline type | Language | Penalty |
|---|---|---|---|---|---|
TP documentation Required | No transfer-pricing-specific threshold | On request | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. Once requested, it must be provided within 30 days. | FR / DE / EN | Yes (up to EUR 25,000, capable of recurring quarterly) |
Master File Draft law
Anticipated | Draft law: turnover > EUR 100m or assets > EUR 400m (standalone) | Not yet in force | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. | — | Not yet in force |
Local File Draft law
Anticipated | Draft law: associated companies within a CbC reporting group | Not yet in force | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. | — | Not yet in force |
CbC report Required | Group revenue ≥ EUR 750m | 12 months after fiscal year-end | Submission deadline The Country-by-Country report is filed by the group's ultimate parent entity; a local notification identifying the reporting entity is filed separately. | — | Yes |
Calculate your exact Luxembourg deadline
Enter your entity’s fiscal year-end to return your exact Luxembourg preparation or filing date. Available without registration.
Scope of the documentation obligation
The operative documentation obligation in Luxembourg is a general one. There is no transfer-pricing-specific threshold, and documentation supporting the arm’s length nature of intra-group transactions should be available by the time the tax return is submitted, in practice by 31 May of the following year. It is produced when the tax authority requests it during an assessment, and must be provided within 30 days.
A formal Master File and Local File regime, set by transaction and asset thresholds, has been published in draft legislation but is not yet in force. It is presented here as anticipated rather than current, so that the live obligation is not overstated.
Distinctive features of the Luxembourg regime
Two features stand out. The first is the recurring nature of the enforcement penalty. There is no transfer-pricing-specific penalty, but administrative penalties of up to EUR 25,000 may be imposed to compel the delivery of documentation, and that penalty can recur on a quarterly basis where the taxpayer continues not to produce the documentation requested. The second is the formal safe harbour for intra-group financing. A group company carrying on a purely intermediary financing activity and meeting the substance requirements of the relevant circular is treated as arm’s length where it achieves a minimum after-tax return of at least 2 percent on the assets financed, subject to the conditions in that circular.
Benchmarking and comparables
Luxembourg does not prescribe its own detailed benchmarking rules; the OECD guidance is followed on the choice between local and foreign comparables, on single-year versus multi-year testing, and on the frequency of fresh searches and roll-forward updates. The general limitation period is five years from 1 January of the year following the relevant tax year, extended to ten years where no return or an incomplete return is filed, or in cases of fraud.
Frequently asked questions
Does Luxembourg currently require a formal Local File and Master File?
Not yet. The operative obligation today is general transfer pricing documentation. A formal Master File and Local File regime has been published in draft legislation but is not yet in force.
Can the Luxembourg documentation penalty be imposed more than once?
Yes. Administrative penalties of up to EUR 25,000 can be applied to compel production of documentation, and that penalty can recur on a quarterly basis while the taxpayer continues not to comply.
This guide is an informational research aid prepared by Comp-Press and is not tax or legal advice. Transfer pricing rules change; verify current requirements before relying on them for filing.