Ireland vs Luxembourg
Corporate Tax Comparison
Time of Update: Ireland: 4/04/2026 / Luxembourg: 4/05/2026
Compare Ireland and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Ireland vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Ireland
Luxembourg
General CIT Rate:
Trade company: 12.5%. Non-trade company: 25% (e.g. royalties received by passive holding companies).
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
Nine months after the end of the tax accounting period.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
Nine months after the end of the tax accounting period.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Small companies: The first installment should be due 31 days before the end of the tax accounting period, and the final installment should be due at the time of submitting the tax return; Large companies: The first installment should be due six months after the start of the tax accounting period, the second installment should be due 31 days before the end of the tax accounting period, and the final installment should be due at the time of submitting the CIT return for that period. * Not later than the 23rd of the month.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Ireland
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
25/20/20
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Ireland
Luxembourg
General Capital Gain Tax Rate:
33%
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Ireland
Luxembourg
Composite Effective Average Tax Rate:
12.36
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
13.21
Composite Effective Marginal Tax Rate:
18.09%
