Luxembourg: Domestic Corporate Taxation
This page was last updated on 7 July 2020.
Fortune tax or net worth tax is levied on resident and non-resident corporate entities (thus excluding financially-transparent partnerships). For businesses, the two main components of net worth are unitary value of property (in effect, the value of buildings in 1941 when the Germans imposed the tax!) and business net worth which is an adjusted version of net worth as calculated for corporation tax.
The rate of the tax is 0.5% for net assets up to €500 million and 0.05% for net assets above that amount. Minimum (low) amounts of tax are payable in certain circumstances. However, for most companies the amount of fortune tax payable can be offset against corporation tax, subject to some balance sheet reserve requirements.