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Tax Haven
Favorable tax systems encourage entrepreneurs to establish special purpose entities in Luxembourg. One of the benefits is the absence of withholding taxes and usage fees. Economists estimate that 80% of profits from EU countries flow to tax havens in Europe, such as Luxembourg, Ireland, and the Netherlands.
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Information and Communication Technology
As a globally recognized center for information and communication technology, Luxembourg has rapidly become a global hub for network security and data protection, ranking high on the global innovation index. Efficient public research facilities and projects provide numerous opportunities for startups, small and medium-sized enterprises, and large corporations.
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Biotechnology Industry
With the assistance of advanced information and communication technology infrastructure, Luxembourg's biotechnology industry ranks high globally due to robust intellectual property protection, national research and development expenditure, policies, and overall stability, each serving as favorable indicators for assessing a country's potential innovative environment.
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Banking and Financial Services
Luxembourg is among the leading European financial centers, following London and Zurich. The banking sector accounts for around one-third of the gross domestic product and serves as a major driving force of the national economy. Its success in the financial field stems from its professional expertise, extensive provision of financial services, political stability, technically skilled workforce, and qualified multilingual labor force.
Tax Info
Enter Dynamic Page- General CIT Rate
- 23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
- CIT Return Due Date
- December 31 of the following year.
- CIT Payment Due Date
- At the end of the month following the receipt of the tax assessment receipt.
- CIT Estimated Payment Due Date
- Quarterly installment payment.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 15/0/0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 15/0/0
- General VAT Rate
- 17
- General Capital Gain Tax Rate
- Capital gains are subject to the normal corporate income tax rate constraint.
- Composite Effective Average Tax Rate
- 23.24%
- Composite Effective Marginal Tax Rate
- 18.09%
Administrative Regions
- CA - Canton of Capellen
- CL - Canton of Clervaux
- D - Diekirch District
- DI - Canton of Diekirch
- EC - Canton of Echternach
- ES - Canton of Esch-sur-Alzette
- G - Grevenmacher District
- GR - Canton of Grevenmacher
- L - Luxembourg District
- LU - Canton of Luxembourg
- ME - Canton of Mersch
- RD - Canton of Redange
- RM - Canton of Remich
- VD - Canton of Vianden
- WI - Canton of Wiltz
Belonging Jurisdiction
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LU - Luxembourg
Grand Duchy of LuxembourgLearn MoreGrand Duchy of Luxembourg -
EEA - European Economic Area
European Economic AreaLearn MoreEuropean Economic Area -
EU - European Union
European UnionLearn MoreEuropean Union -
WORLD - Global
EarthLearn MoreEarth
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