Luxembourg vs Estonia
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Estonia: 4/05/2026
Compare Luxembourg and Estonia corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Estonia Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Estonia
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
Estonia does not tax retained earnings. Distributed profits are taxed at a rate of 20%. A reduced rate of 14% applies to regularly distributed dividends. From 2025, the general rate for distributed profits will increase to 22%.
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
Corporate income tax is assessed and declared monthly.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
CIT on distributed profits is payable upon distribution.
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
Not applicable as tax is only due on distribution.
Withholding Tax (WHT)
Luxembourg
Estonia
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Estonia
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.
Effective Tax Rate (ETR)
Luxembourg
Estonia
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
17.0%
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
0.0%
