Luxembourg

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Tax authorities

Ministère des Finances
3, rue de la Congrégation, L - 1352 Luxembourg
Tel: +352 478 1
Fax: +352 475 241
Website: www.mf.public.lu

Tax rates at a glance

(As of July 2009)

Corporate income tax rate (CIT)	21%(a)
Municipal business tax (MBT)	6,75%(b)
Capital gains tax rate	21%(c)(a)
Net worth tax (NWT)	0.5%(d)
Capital duty	N/A (e)
Branch tax rate	(f)
251658240
Withholding tax
Dividends	15%(g)
Interest	0%(h)
Royalties from patents and licences	0%
Branch remittance tax	0%
251658240
Net operating losses (years)
Carry back	N/A
Carry forward	Indefinitely

(a) On the top of which is levied a 4% surcharge on CIT due for the unemployment fund. Effective rate: 21.84%. Taking into account the MBT, the global corporate income taxation is 28.59% for the city of Luxembourg.
(b) Tax levied on behalf of municipalities where the business undertaking is located. Rates vary according to municipalities. 6.75% is the rate applicable for Luxembourg city.
(c) Capital gains are subject to CIT. Exemptions are available for capital gains on shares under the parent subsidiary regime under certain conditions.
(d) Due on the net assets of the company. An exemption is available for qualifying shareholdings.
(e) Abolished in 2009.
(f) Branches are subject to corporate income tax, MBT and NWT.
(g) Reduced under double tax treaties or exempt under the parent subsidiary regime under certain conditions.
(h) Except if in relation with certain profit participating instruments, or under the provisions of the Directive 2003/48/EC of June 3 2003 on the taxation of savings income (withholding tax of 20%) or under the Luxembourg provisions applicable to interest payments made to individuals resident in Luxembourg (withholding tax of 10% based on the Law of December 23 2005).

Source: Professionals from ATOZ, the Luxembourg member of Taxand, the global network of leading independent tax firms