Luxembourg
At a glance
| Corporate Income Tax Rate | 21% (a) |
| Tax rate applied on capital gains | 21% (a) |
| Tax rate applied on branch profits | 21% (a) |
| Branche Tax Rate | |
| Withholding Tax | |
| on dividends | 15% (b) |
| on interest | 0 (c) |
| on royalties | 0 |
| on branch profit remittance | 0 |
| Net Operating Losses | |
| carry back period | 0 years |
| carry forward period | Unlimited |
| a) This is the maximum rate. In addition, a municipal business tax and an additional unemployment fund contribution (unemployment fund surcharge) are levied on income. | |
| b) The dividend withholding tax is imposed on payments to both residents and nonresidents. For nonresidents, this is a final tax. The rate may be reduced by a tax treaty. | |
| c) Interest payments may be subject to withholding tax in certain circumstances. |
Introduction
Luxembourg, officially the Grand Duchy of Luxembourg (Luxembourgish: Groussherzogtum Lëtzebuerg, French: Grand-Duché de Luxembourg, German: Großherzogtum Luxemburg), is a landlocked country in western Europe, bordered by Belgium, France, and Germany. Luxembourg has a population of over half a million people in an area of approximately 2,586 square kilometres. Luxembourg is a parliamentary representative democracy with a constitutional monarch; it is ruled by a Grand Duke. It is the world's only remaining sovereign Grand Duchy. The country has a highly developed economy, with the highest Gross Domestic Product per capita in the world as per IMF and WB. Luxembourg is a founding member of the European Union, NATO, OECD, the United Nations, Benelux, and the Western European Union, reflecting the political consensus in favour of economic, political, and military integration. The city of Luxembourg, the capital and largest city, is the seat of several institutions and agencies of the European Union.(Source: Wikipedia)
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