Tax Guide

Luxembourg corporate taxes

Luxembourg taxes company profit through three layers — 16% corporate tax, a 7% solidarity surcharge on it, and a municipal business tax — for an aggregate of about 23.87% in Luxembourg City. VAT is the EU’s lowest standard rate at 17%. A participation exemption makes it a major holding-company location. Filing runs through the Administration des contributions directes.

Currency EUR (€)Tax year Calendar year (or chosen financial year)EU member stateLast reviewed 2026-07-12
16%
Corporate income tax
Before surcharge & municipal tax
~23.87%
Aggregate profit tax
Luxembourg City, incl. all layers
17%
VAT standard rate
Lowest in the EU; 14% / 8% / 3%
~45.8%
Income tax (top)
Incl. solidarity surcharge
15%
Dividend WHT
0% under participation exemption
€12,000
Min. share capital (SARL)
SA: €30,000

Company forms & registration

A company is entered in the Trade and Companies Register (RCS); beneficial owners are filed in the RBE register.

Main legal formsSARL (private limited), SA (public), SARL-S (simplified)[3][7]The SARL is the default choice for most businesses.
Minimum share capitalSARL: €12,000; SA: €30,000; SARL-S: €1–€12,000[3][7]
Registers a new employer meetsRCS (incorporation, RBE) → ACD (income tax) → AED (VAT) → CCSS (social security)[7][4]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

Business permitRequired before commercial activity[4]Most trading and craft activities need an establishment authorisation from the Ministry of the Economy.
Beneficial owners (RBE)A person controlling more than 25%[7]
Annual accounts to RCSFiled within 7 months of year end[7]
Document retention10 years[4]

Corporate income tax

Corporate income tax16% (income over €200,000)[1][4]Reduced to 16% for 2025; a 14% rate applies to income up to €175,000.
Solidarity surcharge7% of the corporate tax[1][4]Adds about 1.12 points, funding the employment fund.
Municipal business tax~6.75% (Luxembourg City)[4]Set by each municipality; the three layers give an aggregate of about 23.87% in the capital.
ReturnBy 31 December of the following year[4]

Withholding taxes & dividends

Dividends15%[1][4]Reduced to 0% under the participation exemption or the EU parent-subsidiary directive for a ≥10% holding.
Interest & royalties0% (generally)[1]Luxembourg does not levy withholding tax on arm’s-length interest or royalties.

VAT (TVA)

Standard rate17%[2][6]The lowest standard VAT rate in the EU.
Reduced rates14%, 8% and 3%[2][6]3%: food, books, medicines, restaurants. 8%: gas, electricity, some services. 0% for exports and intra-EU supplies.
Registration threshold€50,000[6]
VAT returnMonthly, quarterly or annual by filing dates[6]Frequency depends on turnover; an annual return is always required.

Payroll: income tax & social security

Income tax is progressive and depends on tax class; the employer withholds it. Social security is shared, and Luxembourg has one of the EU’s highest minimum wages.

Income taxUp to ~45.8% (incl. surcharge)[1][5]A progressive scale to 42%, plus a 7–9% solidarity surcharge; the amount due depends on tax class (1, 1a or 2).
Employee social security~12.45% of gross[5]
Employer social security~12–15% of gross[5]
Minimum wage~€2,704/month unskilled; ~€3,245 skilled[5]Indexed to inflation and reviewed regularly.

Other taxes companies meet

Net wealth tax0.5% (0.05% above €500m); minimum €535–€4,815 by balance-sheet size[4]An annual tax on the company’s net asset value, with a minimum charge.
Registration dutiesOn property and certain deeds[6]

Accounting & financial statements

Accounting standardsLux GAAP or IFRS[7]
Annual accountsFiled with the RCS within 7 months[7]
Statutory auditCompanies exceeding 2 of 3 size thresholds[7]Broadly balance sheet €4.4m, turnover €8.8m, 50 employees.

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

FormWhat it isWho filesFrequencyDeadlineFiled with
Form 500Corporate income tax return[4]Companiesannual31 December of the following yearACDMyGuichet
TVAVAT return[6]VAT-registered personsmonthlyPer assigned frequency; annual recapAEDeTVA / MyGuichet
PayrollWage tax & social security[5]All employersmonthlyMonthly to ACD and CCSSACD / CCSSMyGuichet
eCDF accountsAnnual accounts[7]CompaniesannualFiled with the RCS within 7 monthsRCSeCDF / LBR

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly
  • TVAPer assigned frequency; annual recap
  • PayrollMonthly to ACD and CCSS
annual
  • Form 50031 December of the following year
  • eCDF accountsFiled with the RCS within 7 months

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

  1. Income Tax Law (Loi de l’impôt sur le revenu)Légilux · law
  2. VAT Law (Loi TVA du 12 février 1979)Légilux · law
  3. Companies Law (Loi du 10 août 1915)Légilux · law
  4. Corporate income tax — guidanceAdministration des contributions directes · authority
  5. Payroll — income tax & social securityAdministration des contributions directes / CCSS · authority
  6. VAT — guidanceAdministration de l’enregistrement (AED) · authority
  7. Trade & companies register, beneficial ownersLBR · register