Turkey vs Luxembourg
Corporate Tax Comparison
Time of Update: Turkey: 4/04/2026 / Luxembourg: 4/05/2026
Compare Turkey and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Turkey vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Turkey
Luxembourg
General CIT Rate:
25 (financial companies up to 30%)
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
The 30th day of the fourth month after the end of the fiscal year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
The tax return form is due by the end of the month (i.e., for companies using the calendar year, it is before the end of April).
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Quarterly prepayments of taxes should be paid by the 17th of the second month of each quarter.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Turkey
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Turkey
Luxembourg
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Turkey
Luxembourg
Composite Effective Average Tax Rate:
22.33%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
9.56%
Composite Effective Marginal Tax Rate:
18.09%
