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Luxembourg: Domestic Corporate Taxation

Corporate Income Tax Rates

This page was last updated on 7 July 2020.

Corporation tax in Luxembourg is levied at three rates which at first glace appear to be counter-intuitive. Annual taxable income up to €175,000 is taxed at 15% and income from €175,001 to €200,000 is taxed at 31%. Adding these rates together, a company with a taxable income of exactly €200,000 is taxed at exactly 17%. For taxable income above €200,000, the tax rate is also 17%.

There is a 7% unemployment surtax payable on all corporation tax, and municipal business taxes ranging from 6.75% to 10.5% are also levied. For companies in Luxembourg City with a taxable income of greater than €200,000, this amounts to a total tax rate of 24.94%.

 

 

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