What is the Luxembourg corporate income tax rate?

CIT: 17% on profits above 200,000 EUR (15% below). Plus municipal business tax (impot commercial communal): approximately 6.75% in Luxembourg city. Total effective CIT rate approximately 24.94% including all surcharges.

What is the Luxembourg participation exemption?

Dividends received from a qualifying subsidiary are 100% exempt from CIT if: the parent holds at least 10% (or acquisition cost 1.2m EUR) for at least 12 months. Capital gains on disposal are similarly exempt.

Societe de Participations Financieres is the standard Luxembourg holding vehicle. Fully taxable company benefiting from participation exemption and extensive treaty network (80+ treaties). Subject to EU anti-avoidance rules.

What is the Luxembourg net wealth tax?

0.5% annual tax on adjusted net assets. Assets covered by participation exemption are exempt. Effectively a fixed minimum net wealth tax of 4,815 EUR (financial companies) or 535-32,100 EUR (others) applies.

How has Luxembourg changed post-BEPS?

Luxembourg implemented ATAD, MLI, CbCR, and Pillar Two. Eliminated harmful preferential regimes (IP Box reformed to OECD-compliant nexus approach). Luxembourg structures now require genuine substance and economic activity.

Luxembourg Holding Company Tax Calculator

Calculate Luxembourg corporate and holding tax: CIT rate 17% (15% small companies). Participation exemption: 0% on qualifying dividends/capital gains (10%+ shareholding, 12-month hold). Wealth tax 0.5% on net assets.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Luxembourg corporate and holding tax: CIT rate 17% (15% small companies). Participation exemption: 0% on qualifying dividends/capital gains (10%+ shareholding, 12-month hold). Wealth tax 0.5% on net assets. Use the luxembourg holding tax result to inform your calculation.

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Frequently Asked Questions

What is the Luxembourg corporate income tax rate?

What is the Luxembourg participation exemption?

What is a SOPARFI?

What is the Luxembourg net wealth tax?

How has Luxembourg changed post-BEPS?