Luxembourg

Luxembourg's Rankings
CategoryRankScore
Overall Rank676.96
Corporate Taxes2353.71
Individual Taxes1670.9
Consumption Taxes494.47
Property Taxes1962.53
International Tax Rules594.27

Luxembourg ranks 6th overall on the 2019 International Tax Competitiveness Index, one position worse than in 2018.


Strengths

  • Business investments in machinery and intangibles receive better-than-average tax treatment.
  • Luxembourg has a territorial tax system exempting both foreign dividends and capital gains, with no country limitations.
  • The tax treaty network extends to 82 countries.

Weaknesses

  • Companies are limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to offset past taxable income.
  • Luxembourg has several distortionary property taxes with separate levies on real estate, estates, and assets.
  • The income tax is relatively progressive with a combined top rate on personal income of 47.2 percent.

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