Effective tax rates for income based tax incentives - Corporate tax in Luxembourg
Luxembourg: Effective tax rates for income based tax incentives - Corporate tax was 23.64 Percentage of taxable income in 2017. ▼ Falling
Effective tax rates for income based tax incentives - Corporate tax in Luxembourg, 2000–2017
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of taxable income.
Analysis
In 2017, effective tax rates for income based tax incentives - corporate tax in Luxembourg stood at 23.64 Percentage of taxable income. That is the lowest value across all 10 years on record.
The figure is down 7.3% on the previous year and down 8.6% over ten years.
Over the whole period, effective tax rates for income based tax incentives - corporate tax in Luxembourg peaked at 32.69 Percentage of taxable income in 2000 and was at its lowest, 23.64 Percentage of taxable income, in 2017.
That places Luxembourg 18th out of 41 countries with data for 2017, putting it in the middle of the range.
The long-run direction has been consistently falling across the 10 years of available data.
Effective tax rates for income based tax incentives - Corporate tax in Luxembourg, year by year
| Year | Percentage of taxable income | Change |
|---|---|---|
| 2000 | 32.69 Percentage of taxable income | — |
| 2001 | 32.69 Percentage of taxable income | +0.0% |
| 2002 | 26.52 Percentage of taxable income | -18.9% |
| 2003 | 26.52 Percentage of taxable income | +0.0% |
| 2004 | 26.52 Percentage of taxable income | +0.0% |
| 2005 | 26.52 Percentage of taxable income | +0.0% |
| 2006 | 25.86 Percentage of taxable income | -2.5% |
| 2007 | 25.86 Percentage of taxable income | +0.0% |
| 2016 | 25.5 Percentage of taxable income | -1.4% |
| 2017 | 23.64 Percentage of taxable income | -7.3% |
Luxembourg compared with similar countries
- Luxembourg's 23.64 Percentage of taxable income is above the median for high income countries, which is 19.2 Percentage of taxable income, 1.2× the median. (33 countries reporting)
- Luxembourg's 23.64 Percentage of taxable income is above the median for Europe & Central Asia, which is 17.98 Percentage of taxable income, 1.3× the median. (25 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 27.9 Percentage of taxable income | 25.86 Percentage of taxable income | 32.69 Percentage of taxable income | 8 |
| 2010s | 24.57 Percentage of taxable income | 23.64 Percentage of taxable income | 25.5 Percentage of taxable income | 2 |
Countries ranked near Luxembourg
- 15 Peru 25.75 Percentage of taxable income compare
- 16 New Zealand 24.44 Percentage of taxable income compare
- 17 Italy 24.27 Percentage of taxable income compare
- 19 Chile 23.57 Percentage of taxable income compare
- 19 South Africa 23.57 Percentage of taxable income compare
- 21 Greece 21.82 Percentage of taxable income compare
More economy & growth data for Luxembourg
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 1.47 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 2.3 Percent per annum (2029)
- Foreign direct investment, net outflows (BoP, current US$), gaps 108.60 billion BoP, current US$ (2024)
- Foreign direct investment, net outflows (BoP, current US$), per unit 1.16 BoP, current US$ per US$ of GDP (2024)
- Foreign direct investment, net outflows (BoP, current US$), per capita 160,408 BoP, current US$ per person (2024)
- Foreign direct investment, net inflows (BoP, current US$), gaps filled -93.89 billion BoP, current US$ (2025)
- Foreign direct investment, net inflows (BoP, current US$), annual -188.59 % change on previous year (2025)
- Foreign direct investment, net inflows (BoP, current US$), per unit -0.9282 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net inflows (BoP, current US$), per capita -136,679 BoP, current US$ per person (2025)
- Total reserves (includes gold, current US$), annual growth rate 9.54 % change on previous year (2025)
Frequently asked questions
- What is effective tax rates for income based tax incentives - corporate tax in Luxembourg?
- Effective tax rates for income based tax incentives - corporate tax in Luxembourg was 23.64 Percentage of taxable income in 2017, according to Organisation for Economic Co-operation and Development.
- What is the highest effective tax rates for income based tax incentives - corporate tax recorded in Luxembourg?
- The highest recorded value was 32.69 Percentage of taxable income in 2000.
- What is the lowest effective tax rates for income based tax incentives - corporate tax recorded in Luxembourg?
- The lowest recorded value was 23.64 Percentage of taxable income in 2017.
- How does Luxembourg rank for effective tax rates for income based tax incentives - corporate tax?
- Luxembourg ranks 18th out of 41 countries with data for 2017.
- Is effective tax rates for income based tax incentives - corporate tax rising or falling in Luxembourg?
- Over the last ten years it is down 8.6%. The long-run trend across the full record is falling.
- Where does this Luxembourg data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Effective tax rates for income based tax incentives - Corporate tax statistics — Effective average tax rate. Statizoid updates them automatically from the source API.
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About this data
This table reports synthetic tax policy indicators that capture the effect of income-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to realise on an R&D investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit. Further methodological information is available in the explanatory annex.