INTRODUCTION
The Grand Duchy of Luxembourg is a small, landlocked country in Western Europe. It is bordered by Belgium, France, and Germany.
Luxembourg has a mixed economy which includes high levels of openness and entrepreneurial activity, combined with centralized economic planning and government regulation. Key economic sectors include banking and finance, high/green-tech, communications, and steel, chemicals, rubber, plastics and automotive component manufacturing.
Luxembourg is open to foreign investment, and provides several incentives for investment in the country.
Currency is Euro (EUR).
Abbreviations
| APA | Advance Pricing Agreement |
| CFC | Controlled Finance Corporation |
| CUP | Comparable Uncontrolled Price |
| EEA | European Economic Area |
| EU | European Union |
| EUR | Euro |
| GAAR | General Anti-Avoidance Rule |
| LLC | Limited Liability Company |
| MAP | Mutual Agreement Procedure |
| MNE | Multinational Enterprise |
| OECD | Organization for Economic Co-operation and Development |
| PE | Permanent Establishment |
| TNMM | Transactional Net Margin Method |
| TP | Transfer Pricing |
| VAT | Value Added Tax |
| WHT | Withholding Tax |