Malaysia vs Luxembourg
Corporate Tax Comparison
Time of Update: Malaysia: 4/05/2026 / Luxembourg: 4/05/2026
Compare Malaysia and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Malaysia vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Malaysia
Luxembourg
General CIT Rate:
24
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
From the date when the account is closed, within seven months.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
The last day after seven months from the date of account closure.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Prepaid taxes are to be paid in 12 monthly installments.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Malaysia
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0 - 15/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Malaysia
Luxembourg
General Capital Gain Tax Rate:
Generally, capital gains do not require taxation, except for the income generated from the disposal of real properties located in Malaysia, which is subject to RPGT (up to 30%).
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Malaysia
Luxembourg
Composite Effective Average Tax Rate:
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
Composite Effective Marginal Tax Rate:
18.09%
