Luxembourg: Domestic Corporate Taxation
This page was last updated on 7 July 2020.
Luxembourg has three main taxes that are levied on businesses: corporation tax, municipal business tax on profits, and fortune tax (a wealth tax). Of course there is also VAT and there are withholding taxes.
From January 2011, a ceiling of €300,000 was imposed for severance pay and golden handshakes to limit the impact of severance pay on the corporation's taxable base. Employment fund contributions were raised by 1% to 5%.