Corporate Tax Comparison

Germany vs Luxembourg

Compare Germany and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.

Time of Update — Germany: 4/02/2026 · Luxembourg: 4/05/2026

Base Country/Region

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Compare Corporate Tax

Germany

Luxembourg

Basic Corporate Tax Comparison

PwC World Tax Summary OECD Statistics

Time of Update — Germany: 4/02/2026 · Luxembourg: 4/05/2026

Corporate Income Tax (CIT)

Germany

Luxembourg

General CIT Rate:

Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.

General CIT Rate:

23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])

CIT Return Due Date:

July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).

CIT Return Due Date:

December 31 of the following year.

CIT Payment Due Date:

As stated in the assessment notice.

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 payments are due on the 10th day of March, June, September, and December.

CIT Estimated Payment Due Date:

Quarterly installment payment.

Withholding Tax (WHT)

Germany

Luxembourg

Resident Withholding Tax (Dividend/Interest/Royalty):

25/25/0

Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

25/0/15

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Value-Added Tax (VAT)

Germany

Luxembourg

General VAT Rate:

Learn More

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Value-Added Tax (VAT)

Capital Gain Tax (CGT)

Germany

Luxembourg

General Capital Gain Tax Rate:

Capital gains are subject to the normal corporate tax rate.

General Capital Gain Tax Rate:

Capital gains are subject to the normal corporate income tax rate constraint.

Effective Tax Rate (ETR)

Germany

Luxembourg

Composite Effective Average Tax Rate:

26.59

Composite Effective Average Tax Rate:

23.24%

Composite Effective Marginal Tax Rate:

11.00

Composite Effective Marginal Tax Rate:

18.09%

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