Company Formation Luxembourg

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Taxes in Luxembourg

Updated on Thursday 14th April 2016

Rate this article
4.5 5 1
based on 2 reviews


taxes_in_luxembourg.jpgLuxembourg has a long lasting tradition of a great business center, with high financial competence. It has a very good geographic positioning, at the heart of Europe, a strong political stability, and has a very multicultural and qualified workforce. All these key factors have established Luxembourg as being a hub for international trade in the financial sector.
 
Income tax in Luxembourg
 
Any person known to be a resident of Luxembourg has to pay taxes on his worldwide income during the tax year. In Luxembourg, the tax year starts on January 1 and ends on December 31. When it comes to married couples, spouses are taxed jointly. 
 
If a person is fiscally domiciled in Luxembourg or if he has been resident of Luxembourg for more than six months per year, then he can be considered a resident for tax purposes. 
 
Luxembourg splits the income one generates in eight categories that added together over the year generate the total taxable income. The most important are:
 
- commercial or business profits;
- profits generated by agriculture and forestry;
- profits derived from self-employed professionals;
- net income from employment, pensions and/or annuities, investments or rental of property;
- other net income (including capital gains).
 
There are cases in which withholding taxes are levied on some of the above mentioned incomes. When it comes to income generated from employment, pensions or savings and investments, they are taxed on a pay-as-you-earn system. There are incomes that must be declared in an annual tax return that must be submitted to the Luxembourg Tax Administration.
 
If you plan to open a company in Luxembourg and you want to know more about the taxes in Luxembourg, our company formation team  will help you with all the needed information. Our experienced personnel in setting up a company in Luxembourg can explain in detail the taxation system in Luxembourg. 
 
Corporate income tax in Luxembourg
 
The corporate income tax in Luxembourg is calculated on the profit specified in the commercial balance sheet. The income is derived from a commercial activity, such as self-employment or partnership in one of the types of companies available in Luxembourg. Partners of such companies are taxed individually based on the share they have within the partnership.
 
In Luxembourg, the rate of the corporate income tax is 22.47 percent and includes a 7 percent employment fund contribution. Furthermore, Luxembourg applies a rate for the city of Luxembourg worth 6.75 percent.
Contact us for more details.
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Luxembourg

Contact our specialists in company formation in Luxembourg, who have a large experience in finance and international business. 

Set up an appointment with us at (+352)278 617 15. Alternatively you can incorporate your company without traveling to Luxembourg.
 

Online Incorporation

tax-calculator-belgium

Tax Calculator

tax-calculator-luxembourg

Testimonials

Francesco-Dagnino.jpg

BridgeWest takes great care of selecting its affiliates worldwide and Luxembourg is no exception.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

Client Reviews

I'm very pleased with the services provided by the team in Luxembourg. They have explained the company incorporation procedure in detail and made everything seem very easily accomplished! See more reviews Post your review!

We recommend ClientPedia

This website is marketed by ClientPedia

banner Clientpedia.jpg

Facebook page