France vs Luxembourg
Corporate Tax Comparison
Time of Update: France: 4/02/2026 / Luxembourg: 4/05/2026
Compare France and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
France vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
France
Luxembourg
General CIT Rate:
Standard rate: 25%; qualifying small corporations may benefit from 15% on the first EUR 42,500 of taxable profits.
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
About the fiscal year ending on December 31st, until the end of May of the following year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
About the fiscal year ending on December 31 and May 15 of the following year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
By way of installment payments in four installments (i.e., for the fiscal year ending on December 31, must be submitted and paid on March 15, June 15, September 15, and December 15).
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
France
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):
25/0/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
France
Luxembourg
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
France
Luxembourg
Composite Effective Average Tax Rate:
23.66
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
15.38
Composite Effective Marginal Tax Rate:
18.09%
