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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