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Luxembourg: Domestic Corporate Taxation

Withholding Tax

A withholding tax of 15% applies to dividends paid to a non-resident company unless the rate is reduced or dividends exempted by an applicable tax treaty. Dividends paid to a qualifying company under the EU parent-subsidiary directive are not subject to withholding tax. Luxembourg has extended this regime to non-EU tax treaty country parent companies as long as similar conditions to those laid out in the Luxembourg participation exemption regime and the parent company is subject to a tax similar to that applicable in Luxembourg.



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