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