The Luxembourg corporate income tax
Corporate income tax applies mainly to the following legal forms of capital companies:
- public limited companies (société anonyme – SA);
- partnerships limited by shares (société en commandite par actions – SECA or SCA) – their taxable amount also includes the share of profits accruing to general partners;
- limited liability companies (société à responsabilité limitée – SARL) and single member limited liability companies.
Undertakings for Collective Investment (UCI) which collect savings from the public in order to make investments according to the principle of risk diversification (equities, bonds, etc.) are excluded from said tax. UCIs can take the following legal form of company structure:
- SICAV – open-ended investment company, i.e. a public limited company whose particularity is the variable capital;
- SICAF – closed-ended investment company, i.e. a public limited company with the exception of its investment policy.Tax rate
Corporate income tax for resident and non-resident companies has been set at the following rate in 2013:
20 % where the taxable income does not exceed EUR 15,000;
21 % where the taxable income exceeds EUR 15,000.
An additional charge of 7 % is levied on corporate income tax as a contribution to the employment fund.
Amount of minimum tax
In some cases, businesses are subject to the payment of a minimum tax where the amount set is based on the closing balance in their last annual accounts.