Companies incorporated in Luxembourg are subject to progressive corporation income tax
(including municipal tax) with rates rising from 0% to a maximum 29.63%.
- A withholding tax of 15% is levied on dividend payments, unless the double tax treaties provide for lower rates or the Luxembourg participation exemption is applicable. Interest, royalties and liquidation proceeds are not subject to withholding tax. Earnings from stock trading and most other form of investment are also tax-free.
- Net wealth tax is levied annually on total gross assets reduced by the debts of the companies. The actual net worth tax rate is 0.5%.
- When a company is formed, the subscription of its capital is subject to a duty tax equal to 1% of the capital. The same is true for capital increase, whether in cash, in kind or for share premium
- Luxemburg double tax treaty network is extensive and expanding over 50 countries
- Highly prestigious jurisdiction