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On April 8, 2011, the Luxembourg tax authorities issued circular LIR n° 164/2Bbis that supplements to Circular LIR n°164/2 published on January 28th, 2011 by clarifying the transition period question for confirmations on financing margins issued by the tax authorities before January 28th, 2011 to taxpayers engaged in intercompany financing transactions.

The circular LIR n°164/2bis provides that those taxpayers will have to proactively demonstrate as from January 1st, 2012 (i.e. financial year 2012) that they are complying on an ongoing basis with the requirements set out by the Transfer Pricing Circular issued on January 28th, 2011.

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