Luxembourg vs Italy
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Italy: 4/05/2026
Compare Luxembourg and Italy corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Italy Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Italy
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
24
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
By the end of the 9th month after the end of the tax year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
The last day of the sixth month after the end of the tax year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
Advance payment: 1) Pay 40% on the last day of the sixth month after the end of the tax year, 2) Pay 60% at the end of the eleventh month after the end of the tax year.
Withholding Tax (WHT)
Luxembourg
Italy
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
26/26/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Italy
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate. For financial investments, as long as they meet the conditions stipulated by law, they can be eligible for a 95% exemption under the PEX system.
Effective Tax Rate (ETR)
Luxembourg
Italy
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
21.18%
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
-22.74%
