Brazil vs Luxembourg
Corporate Tax Comparison
Time of Update: Brazil: 3/24/2026 / Luxembourg: 4/05/2026
Compare Brazil and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Brazil vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Brazil
Luxembourg
General CIT Rate:
34 (composed of 25% IRPJ and 9% CSLL).
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
The last working day of July.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
Usually, on the last working day of March of the following year (when calculating IRPJ and CSLL annually), taxpayers can pay taxes within a quota from the last working day of the next month to the end of the quarter, or they can pay taxes in three installments, with the first installment from the next month to the end of the quarter when IRPJ and CSLL are calculated quarterly.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Normally monthly instalments, but there is an option of quarterly instalment.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Brazil
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0 / 15 - 22.5 / N/A
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
10 / 15 / 15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Brazil
Luxembourg
General Capital Gain Tax Rate:
Residents: 34 legal entities (considered as a part of normal income, subject to normal CIT tax rate); non-residents: 15 to 22.5 (WHT); non-residents from tax haven countries: 25 (WHT).
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Brazil
Luxembourg
Composite Effective Average Tax Rate:
32%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
15%
Composite Effective Marginal Tax Rate:
18.09%
