Corporate Tax Comparison

Luxembourg vs British Virgin Islands

Compare Luxembourg and British Virgin Islands corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.

Time of Update — Luxembourg: 4/05/2026 · British Virgin Islands: 4/04/2026

Base Country/Region

Compare Country/Region

Compare Corporate Tax

Luxembourg

British Virgin Islands

Basic Corporate Tax Comparison

PwC World Tax Summary OECD Statistics

Time of Update — Luxembourg: 4/05/2026 · British Virgin Islands: 4/04/2026

Corporate Income Tax (CIT)

Luxembourg

British Virgin Islands

General CIT Rate:

23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])

General CIT Rate:

The British Virgin Islands does not impose a corporate income tax on businesses. This tax-free environment is a significant reason why the BVI is an attractive destination for international businesses https://tradecouncil.org/corporate-income-tax-in-the-british-virgin-islands/

CIT Return Due Date:

December 31 of the following year.

CIT Return Due Date:

CIT Payment Due Date:

At the end of the month following the receipt of the tax assessment receipt.

CIT Payment Due Date:

CIT Estimated Payment Due Date:

Quarterly installment payment.

CIT Estimated Payment Due Date:

Withholding Tax (WHT)

Luxembourg

British Virgin Islands

Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Resident Withholding Tax (Dividend/Interest/Royalty):

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

Value-Added Tax (VAT)

Luxembourg

British Virgin Islands

General VAT Rate:

Learn More

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Value-Added Tax (VAT)

Capital Gain Tax (CGT)

Luxembourg

British Virgin Islands

General Capital Gain Tax Rate:

Capital gains are subject to the normal corporate income tax rate constraint.

General Capital Gain Tax Rate:

Effective Tax Rate (ETR)

Luxembourg

British Virgin Islands

Composite Effective Average Tax Rate:

23.24%

Composite Effective Average Tax Rate:

Composite Effective Marginal Tax Rate:

18.09%

Composite Effective Marginal Tax Rate:

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