Luxembourg tax parameters 2026, verified, dated, downloadable.
Since January 1, 2025, a fully taxable company established in Luxembourg City bears an aggregate tax rate of 23.87%: corporate income tax at 16%, increased by the employment fund contribution (7% of the CIT), plus municipal business tax at 6.75%. This page publishes, for every statutory rate, threshold and amount cited on the Financial Services Luxembourg website, the value in force, its effective date, its official source, the date of its last human verification and the value it replaced.
The register holds 33 Luxembourg tax and corporate parameters currently in force, each linked to its legal text, the competent administration's URL and a human verification date. Superseded values remain available with their end date. The same data feeds every page of this site and can be downloaded as JSON and CSV.
Parameters in force, verified on September 17, 2026
One row per parameter. The “Since” column is the effective date of the legal text, not the publication date of this page. The source links to the competent administration or text.
| Parameter | Value | Since | Source | Verified on |
|---|---|---|---|---|
| Corporate income tax (IRC) | ||||
| Corporate income tax (IRC), standard ratelegal requirement | 16% | Art. 174 LIR, tel que modifié par la loi du 20 décembre 2024 | ||
| Corporate income tax, reduced rate below the taxable-income ceilinglegal requirement | 14% | Art. 174 LIR (loi du 20 décembre 2024) | ||
| Taxable-income ceiling for the reduced corporate income tax ratelegal requirement | EUR 175,000 | Art. 174 LIR | ||
| Employment fund contribution, as a percentage of corporate income taxlegal requirement | 7% | Loi modifiée du 30 juin 1976 portant création d'un fonds pour l'emploi | ||
| Municipal business tax (ICC) | ||||
| Municipal business tax (ICC), Luxembourg Citylegal requirement | 6.75% | Loi modifiée du 1er décembre 1936 concernant l'impôt commercial ; taux communal fixé par le conseil communal | ||
| Aggregate corporate tax rate | ||||
| Aggregate corporate tax rate (CIT + employment fund contribution + municipal business tax), Luxembourg Citylegal requirement · derived value (computed from official values) | 23.87% | Dérivé : 16 % x 1,07 + 6,75 % = 23,87 % | ||
| Aggregate corporate tax rate at the reduced CIT rate, Luxembourg Citylegal requirement · derived value (computed from official values) | 21.73% | Dérivé : 14 % x 1,07 + 6,75 % = 21,73 % | ||
| Net wealth tax (NWT) | ||||
| Net wealth tax, standard rate (first bracket of unitary value)legal requirement | 0.5% | Loi modifiée du 16 octobre 1934 concernant l'impôt sur la fortune (VStG), § 8 | ||
| Minimum net wealth tax, first balance-sheet bracketlegal requirement | EUR 535 | § 8 (2) VStG, refonte par la loi du 20 décembre 2024 (barème unique selon le total du bilan, après l'arrêt de la Cour constitutionnelle du 10 novembre 2023) | ||
| Minimum net wealth tax, second balance-sheet bracketlegal requirement | EUR 1,605 | § 8 (2) VStG (loi du 20 décembre 2024) | ||
| Minimum net wealth tax, third balance-sheet bracketlegal requirement | EUR 4,815 | § 8 (2) VStG (loi du 20 décembre 2024) | ||
| Participation exemption (art. 166 LIR) | ||||
| Minimum shareholding (dividends and capital gains)tax condition | 10% | Art. 166 (1) LIR ; RGD du 21 décembre 2001 pour les plus-values | ||
| Alternative acquisition price to the shareholding threshold, dividendstax condition | EUR 1,200,000 | Art. 166 (1) LIR | ||
| Alternative acquisition price to the shareholding threshold, capital gainstax condition | EUR 6,000,000 | RGD du 21 décembre 2001 portant exécution de l'art. 166 (9) LIR | ||
| Minimum holding period (or holding commitment)tax condition | 12 months | Art. 166 (1) LIR | ||
| Anti-abuse clause specific to the exemption (non-genuine arrangement with a main tax purpose)administrative position | Art. 166 (2bis) LIR | Loi du 18 décembre 2015 transposant la directive (UE) 2015/121 ; règle générale anti-abus § 6 StAnpG (loi du 21 décembre 2018, ATAD 1) | ||
| Withholding tax on dividends (exemption under art. 147 LIR, subject to conditions)legal requirement | 15% | Art. 146 et 147 LIR | ||
| VAT | ||||
| VAT, standard ratelegal requirement | 17% | Art. 39 de la loi modifiée du 12 février 1979 concernant la TVA | ||
| VAT, intermediate ratelegal requirement | 14% | Loi modifiée du 12 février 1979, annexe B | ||
| VAT, reduced ratelegal requirement | 8% | Loi modifiée du 12 février 1979, annexe A | ||
| VAT, super-reduced ratelegal requirement | 3% | Loi modifiée du 12 février 1979, annexe B | ||
| Minimum share capital | ||||
| Minimum share capital, SARLlegal requirement | EUR 12,000 | Art. 710-5 de la loi modifiée du 10 août 1915 (LSC) | ||
| Minimum share capital, SARL-S (ceiling: EUR 12,000 inclusive, Law of 18 May 2026)legal requirement | EUR 1 | Art. 720-1 et suivants LSC (loi du 23 juillet 2016) | ||
| Minimum share capital, SA (at least one quarter paid up)legal requirement | EUR 30,000 | Art. 420-1 LSC | ||
| Statutory audit of annual accounts | ||||
| Statutory audit by a réviseur d'entreprises agréé: balance sheet total (two of three criteria, two financial years)legal requirement | EUR 7,500,000 | Art. 35 et 69 de la loi modifiée du 19 décembre 2002 (RCS, comptabilité, comptes annuels), seuils relevés par le RGD du 25 octobre 2024 | ||
| Statutory audit: net turnoverlegal requirement | EUR 15,000,000 | Art. 35 loi du 19 décembre 2002, RGD du 25 octobre 2024 | ||
| Statutory audit: average headcountlegal requirement | 50 employees | Art. 35 loi du 19 décembre 2002 | ||
| Consolidated accounts | ||||
| Small-group consolidation exemption: balance sheet total (net basis)legal requirement | EUR 25,000,000 | Art. 1711-4 LSC, seuils relevés par le RGD du 25 octobre 2024, exercices ouverts dès le 1er janvier 2023 | ||
| Small-group consolidation exemption: net turnover (net basis)legal requirement | EUR 50,000,000 | Art. 1711-4 LSC, RGD du 25 octobre 2024 | ||
| Small-group consolidation exemption, simplified method: balance sheet total (gross basis)legal requirement · derived value (computed from official values) | EUR 30,000,000 | Art. 1711-4 par. 2 LSC, seuils nets majorés de 20 % (RGD du 25 octobre 2024) | ||
| Small-group consolidation exemption, simplified method: net turnover (gross basis)legal requirement · derived value (computed from official values) | EUR 60,000,000 | Art. 1711-4 par. 2 LSC, seuils nets majorés de 20 % (RGD du 25 octobre 2024) | ||
| Small-group consolidation exemption: average headcountlegal requirement | 250 employees | Art. 1711-4 LSC | ||
| Pillar Two | ||||
| Pillar Two (global minimum tax): consolidated group revenuelegal requirement | EUR 750,000,000 | Loi du 22 décembre 2023 transposant la directive (UE) 2022/2523 | ||
Reviewed by: Mickaël LOC, comptable autorisé (autorisation 10077274).
What changed: parameter history
Every superseded value is kept with its end date. Example: the aggregate rate in Luxembourg City was 24.94% until December 31, 2024 (CIT at 17%); it has been 23.87% since January 1, 2025, the CIT having been lowered to 16% by the law of 20 December 2024. The consolidation exemption thresholds (EUR 20,000,000 and EUR 40,000,000 until December 31, 2022) and the statutory audit thresholds (EUR 4,400,000 and EUR 8,800,000 until December 31, 2023) were raised by the Grand-Ducal Regulation of 25 October 2024.
| Effective date | Parameter | Before | After | Legal basis and note |
|---|---|---|---|---|
| Corporate income tax (IRC), standard rate | 17% (until December 31, 2024) | 16% | Art. 174 LIR, tel que modifié par la loi du 20 décembre 2024 — Taux applicable aux années d'imposition 2019 à 2024. | |
| Corporate income tax, reduced rate below the taxable-income ceiling | 15% (until December 31, 2024) | 14% | Art. 174 LIR (loi du 20 décembre 2024) — Taux réduit antérieur. | |
| Aggregate corporate tax rate (CIT + employment fund contribution + municipal business tax), Luxembourg City | 24.94% (until December 31, 2024) | 23.87% | Dérivé : 16 % x 1,07 + 6,75 % = 23,87 % — 17 % x 1,07 + 6,75 % ; périmé depuis l'année d'imposition 2025. | |
| Aggregate corporate tax rate at the reduced CIT rate, Luxembourg City | 22.80% (until December 31, 2024) | 21.73% | Dérivé : 14 % x 1,07 + 6,75 % = 21,73 % — 15 % x 1,07 + 6,75 %. | |
| Statutory audit: net turnover | EUR 8,800,000 (until December 31, 2023) | EUR 15,000,000 | Art. 35 loi du 19 décembre 2002, RGD du 25 octobre 2024 — Seuil antérieur. | |
| Statutory audit by a réviseur d'entreprises agréé: balance sheet total (two of three criteria, two financial years) | EUR 4,400,000 (until December 31, 2023) | EUR 7,500,000 | Art. 35 et 69 de la loi modifiée du 19 décembre 2002 (RCS, comptabilité, comptes annuels), seuils relevés par le RGD du 25 octobre 2024 — Seuil antérieur, encore affiché sur certaines fiches guichet.lu. | |
| VAT, intermediate rate | 13% (until December 31, 2023) | 14% | Loi modifiée du 12 février 1979, annexe B — Baisse temporaire 2023. | |
| VAT, standard rate | 16% (until December 31, 2023) | 17% | Art. 39 de la loi modifiée du 12 février 1979 concernant la TVA — Baisse temporaire d'un point du 1er janvier au 31 décembre 2023. | |
| VAT, reduced rate | 7% (until December 31, 2023) | 8% | Loi modifiée du 12 février 1979, annexe A — Baisse temporaire 2023. | |
| Small-group consolidation exemption: net turnover (net basis) | EUR 40,000,000 (until December 31, 2022) | EUR 50,000,000 | Art. 1711-4 LSC, RGD du 25 octobre 2024 — Seuil antérieur. | |
| Small-group consolidation exemption, simplified method: net turnover (gross basis) | EUR 48,000,000 (until December 31, 2022) | EUR 60,000,000 | Art. 1711-4 par. 2 LSC, seuils nets majorés de 20 % (RGD du 25 octobre 2024) — Seuil antérieur en méthode simplifiée (40 M x 1,2). | |
| Small-group consolidation exemption: balance sheet total (net basis) | EUR 20,000,000 (until December 31, 2022) | EUR 25,000,000 | Art. 1711-4 LSC, seuils relevés par le RGD du 25 octobre 2024, exercices ouverts dès le 1er janvier 2023 — Seuil antérieur. | |
| Small-group consolidation exemption, simplified method: balance sheet total (gross basis) | EUR 24,000,000 (until December 31, 2022) | EUR 30,000,000 | Art. 1711-4 par. 2 LSC, seuils nets majorés de 20 % (RGD du 25 octobre 2024) — Seuil antérieur en méthode simplifiée (20 M x 1,2). | |
| Minimum share capital, SA (at least one quarter paid up) | EUR 31,000 (until August 22, 2016) | EUR 30,000 | Art. 420-1 LSC — Ancien minimum. | |
| Minimum share capital, SARL | EUR 12,394.68 (until August 22, 2016) | EUR 12,000 | Art. 710-5 de la loi modifiée du 10 août 1915 (LSC) — Ancien minimum (500 000 LUF convertis). |
Where these parameters apply
Aggregate corporate tax rate: The aggregate rate, CIT and municipal business tax set the tax charge computed at each year-end. See accounting and tax returns for a company.
Participation exemption (art. 166 LIR): The shareholding threshold, acquisition price and holding period condition the exemption of dividends and capital gains. See SOPARFI regime.
Net wealth tax (NWT): The minimum net wealth tax applies every year, even without profit. See taxation of a Luxembourg holding company.
VAT: VAT rates apply from the first invoice of a registered company. See VAT registration.
Minimum share capital: Minimum share capital drives the choice between SARL, SARL-S and SA at incorporation. See company formation in Luxembourg.
Statutory audit of annual accounts: Size thresholds determine the statutory audit and the format of the accounts to file. See annual accounts and filing.
Consolidated accounts: The consolidation exemption thresholds and the Pillar Two threshold are assessed at group level. See group consolidated accounts.
Three dates, three meanings
- Effective date
- First day the value applies, set by the legal or regulatory text. This is the date that matters for a given financial year.
- Verification date
- Last human review of the value against its official source by the firm's content reviewer. The register refuses to publish a value not re-verified for more than 120 days.
- Page revision date
- Last modification of the page citing the value (sitemap lastmod). It can be later than the other two without the value having changed.
Nature of each statement
Each row carries its nature: legal requirement (the text imposes it), tax condition (criterion for a regime, such as article 166 LIR), administrative position (circular or administrative statement). A “derived” value is computed from official values, for instance the aggregate rate, and the formula is given as source. No row of this register is a recommendation of the firm: recommendations are flagged as such on service pages.
Open data and reuse
The dataset is published under the Creative Commons Attribution 4.0 licence: free reuse, including commercial, provided the source is cited. Method version 1.0; the update date is that of the register's last verification, never that of a deployment.
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How to cite
“Financial Services Luxembourg, Luxembourg tax parameters, register verified on September 17, 2026, https://www.financialservices.lu/en/parametres-fiscaux-luxembourg”. For a single value, cite the row: parameter, value, effective date, source.
Official sources of the register
Texts and administrations each row refers to. No secondary source: no third-party guide, no press.
- Art. 174 LIR, tel que modifié par la loi du 20 décembre 2024
- Loi modifiée du 1er décembre 1936 concernant l'impôt commercial ; taux communal fixé par le conseil communal
- Loi modifiée du 16 octobre 1934 concernant l'impôt sur la fortune (VStG), § 8
- Art. 166 (1) LIR ; RGD du 21 décembre 2001 pour les plus-values
- Art. 39 de la loi modifiée du 12 février 1979 concernant la TVA
- Art. 710-5 de la loi modifiée du 10 août 1915 (LSC)
- Art. 720-1 et suivants LSC (loi du 23 juillet 2016)
- Art. 420-1 LSC
- Art. 35 et 69 de la loi modifiée du 19 décembre 2002 (RCS, comptabilité, comptes annuels), seuils relevés par le RGD du 25 octobre 2024
- Art. 1711-4 LSC, seuils relevés par le RGD du 25 octobre 2024, exercices ouverts dès le 1er janvier 2023
- Loi du 22 décembre 2023 transposant la directive (UE) 2022/2523
Frequently asked questions
Because the rate changed. Until December 31, 2024, the aggregate rate of a company established in Luxembourg City was 24.94%, with CIT at 17%. Since January 1, 2025, CIT is 16% and the aggregate rate 23.87%. Pages still quoting 24.94% as the current rate are repeating a superseded value.
No. A statutory audit by a réviseur d'entreprises agréé is required once two of the following three criteria are exceeded over two financial years: balance sheet total EUR 7,500,000, net turnover EUR 15,000,000, average headcount of 50. The small-group consolidation exemption uses distinct thresholds: EUR 25,000,000, EUR 50,000,000 and 250 employees. The same headcount figure therefore does not designate the same obligation.
No. These are statutory parameters, verified and dated, published so that anyone can check what this site states. Applying them to a given situation (municipality other than Luxembourg City, special regime, non-calendar financial year) requires an individual analysis by a qualified professional.
A question on how these parameters apply to your company?
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General information, current as of the verification date shown. Municipalities other than Luxembourg City apply a different municipal business tax rate. Not individual tax advice.