United States vs Luxembourg
Corporate Tax Comparison
Time of Update: United States: 4/04/2026 / Luxembourg: 4/05/2026
Compare United States and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
United States vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
United States
Luxembourg
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
As of the 15th day of the 12th month of the tax year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
United States
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
United States
Luxembourg
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
United States
Luxembourg
Composite Effective Average Tax Rate:
22.69
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
7.03
Composite Effective Marginal Tax Rate:
18.09%
