Paraguay vs Luxembourg
Corporate Tax Comparison
Time of Update: Paraguay: 4/06/2026 / Luxembourg: 4/05/2026
Compare Paraguay and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Paraguay vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Paraguay
Luxembourg
General CIT Rate:
10%
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
By the end of the 4th month following fiscal year-end
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
By the end of the 4th month following fiscal year-end
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Quarterly advance payments
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Paraguay
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
8/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/15/15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Paraguay
Luxembourg
General Capital Gain Tax Rate:
10%
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Paraguay
Luxembourg
Composite Effective Average Tax Rate:
9.44%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
7.00%
Composite Effective Marginal Tax Rate:
18.09%
