Luxembourg vs Canada
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Canada: 4/04/2026
Compare Luxembourg and Canada corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Canada Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Canada
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Withholding Tax (WHT)
Luxembourg
Canada
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Canada
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
Effective Tax Rate (ETR)
Luxembourg
Canada
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
13.74
