How much tax does a Luxembourg Company pay?
Although it pays no corporate tax, an SPF is subject to an annual subscription tax of 0.25% on debts exceeding eight times the paid up capital, up to a maximum of 125,000 Euros (US$166,000) per year. An SPF is subject to Luxembourg corporate tax and wealth tax if in a year it derives (for more than 5% of its total dividend income) dividends coming from non-listed foreign companies which are not subject to an income tax comparable to the standard Luxembourg corporate income tax rate. Luxembourg Trading Company A Luxembourg Trading Company is subject to Luxembourg corporation tax of 22.88% on worldwide income exceeding 15,000 Euros (US$20,000). However, tax relief is available via the double taxation treaties Luxembourg signed with more than 40 countries. In addition to corporate tax, a Luxembourg Trading Company pays a Municipal Business Tax (ICC) on profits of 6.75%, which is levied on taxable income above 17,000 Euros. Capital gains realised by the Luxembourg Trading Company is treate
