Luxembourg vs Panama
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Panama: 4/04/2026
Compare Luxembourg and Panama corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Panama Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Panama
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
25
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
Three months after the end of the fiscal year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
Tax payments must be made within three months after the end of the respective accounting period.
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
6 months, 9 months, and 12 months after the end of the tax year.
Withholding Tax (WHT)
Luxembourg
Panama
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/NA/NA
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/12.5/12.5
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Panama
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
Return on investment sees Panama Company tax summary.
Effective Tax Rate (ETR)
Luxembourg
Panama
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
23.33%
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
18.47%
