• Luxembourg Tax Features

  • Taxable Basis
    Luxembourg tax resident companies are taxed on their worldwide income whereas non-Luxembourg tax resident companies are taxed only on income generated in Luxembourg

    Taxable Period
    Calendar or accounting year

    Corporation Tax Rate(s)
    Effective 28.15% or 29.22% (i.e. including Surcharge and Municipal Business Tax)

    Ordinary Tax Losses
    Can be carried forward indefinitely. No carry back

    Capital Gains
    Taxable except disposal of shares in qualifying participations

    Capital Gains Tax Rate(s)
    0% on disposal of shares in qualifying participations, otherwise effective 28.15% or 29.22%

    Capital Losses
    Treated as ordinary losses

    Stamp Duty
    No

    Capital Duty
    No

    Other Taxes
    - Municipal tax at 6% - 12%
    - Employment Fund Surcharge at 7% on tax liability
    - Net Wealth Tax at 0.5% (qualifying participation are exempt)

    VAT
    Yes

    VAT Standard Rate
    15%

    VAT Reduced Rate(s)
    12%, 6% and 3%

    VAT Registration Threshold
    €25,000

    VAT Filing & Payment
    Monthly or quarterly

Compare Luxembourg to other jurisdictions and see the difference in corporation tax rates, tax residency requirements, VAT rates, capital gain taxes, etc.

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