Luxembourg: Distressed Debt Transfer Pricing and Digitalisation (Bill No. 8735)

Arm's-Length Approach to Distressed Debt (Case 53194C): The Luxembourg Administrative Court of Appeal ruled in favour of a taxpayer, confirming that interest reductions and debt waivers agreed during intra-group restructurings for distressed entities comply with the arm's-length principle if an independent lender would accept them to avoid insolvency.

Insolvency Code Digitalisation (Bill No. 8735): The Luxembourg Parliament has enacted Bill No. 8735, fully transposing EU Restructuring Directive 2019/1023 and introducing mandatory electronic filings for judicial reorganization and liquidation proceedings with deadlines extending up to midnight.

Luxembourg: Distressed Debt Transfer Pricing and Digitalisation (Bill No. 8735)
Hayden Morgan 12 August 2026
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