The key figures
Taxes for trading companies
| Designation | Tax rate | On 100 |
|---|---|---|
| Income before tax | 0 | 100 |
| Business tax (*) | 6.75% | (6.75) |
| Corporate Tax | 21% | (21.00) |
| Employment Fund | 7% | (1.47) |
| Net income after tax | 29.22% | 70.28 |
(*) The business tax is not deductible from the taxable base. This means that corporate tax is recalculated on pre-tax income.
Since 2013, a minimum progressive tax was set as follows:
| Balance sheet total (in €) | Minimum tax (in €) |
|---|---|
| < 350.000 | 500 |
| < 2.000.000 | 1.500 |
| < 10.000.000 | 5.000 |
| < 15.000.000 | 10.000 |
| < 20.000.000 | 15.000 |
| > 20.000.000 | 20.000 |
Taxes for financial companies
The law defined as financial companies the collective entities with registered office or central administration in Luxembourg at the head of which the sum of financial assets (major holdings, receivables from related companies, securities and bank deposits) exceeds 90% of total assets.
For these companies, the minimum tax increases from € 1,500 to € 3,000 (€ 3,210 including the contribution to the employment fund [Reminder: 7%]). SICAR are not excluded and have to pay this tax.
Taxation of Natural Persons (IPP)
Below you will find the table of personal income tax. It constitutes the taxable amount. Determining your tax comes after determining the tax class you belong to according to your family situation.
| Tax rates based on taxable income brackets |
|---|
| 0% for the portion of income less than 11.265 euros |
| 8% for the portion of income between 11.265 and 13.173 euros |
| 10% for the portion of income between 13.173 and 15.081 euros |
| 12% for the portion of income between 15.081 and 16.989 euros |
| 14% for the portion of income between 16.989 and 18.897 euros |
| 16% for the portion of income between 18.897 and 20.805 euros |
| 18% for the portion of income between 20.805 and 22.713 euros |
| 20% for the portion of income between 22.713 and 24.621 euros |
| 22% for the portion of income between 24.621 and 26.529 euros |
| 24% for the portion of income between 26.529 and 28.437 euros |
| 26% for the portion of income between 28.437 and 30.345 euros |
| 28% for the portion of income between 30.345 and 32.253 euros |
| 30% for the portion of income between 32.253 and 34.161 euros |
| 32% for the portion of income between 34.161 and 36.069 euros |
| 34% for the portion of income between 36.069 and 37.977 euros |
| 36% for the portion of income between 37.977 and 39.885 euros |
| 38% for the portion of income between 39.885 and 41.793 euros |
| 39% for the portion of income between 41.793 and 100.000 euros |
| 40% for the portion of income over 100.000 euros |
Compare Ltd / LLC
| Data | Ltd | LLC |
|---|---|---|
| Capital min. (€) | 31.000 | 12.500 |
| Release of capital (*) | 25% or 7.750 | 100% |
| Number of shareholders min | 1 | 1 |
| Directors (**)/ Manager | 3 | 1 |
| Contribution in Kind | Yes auditor with report | Yes without auditor report |
| Anonymity | YES | NO |
| External Auditor | YES | NO (unless associated> 25) |
| Publication of disposals | NO | YES |
(*) : The release of capital must be made within 5 years following the constitution. The shares are only available as if the entire capital has been paid
(**): If the company is held by a single shareholder, it is possible (if the statutes provides it) to have a sole director