Denmark vs Luxembourg
Corporate Tax Comparison
Time of Update: Denmark: 4/05/2026 / Luxembourg: 4/05/2026
Compare Denmark and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Denmark vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Denmark
Luxembourg
General CIT Rate:
22
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
In general, six months after the end of the fiscal year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
Income for the next fiscal year was received on November 20th.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Two equal installments were made on March 20 and November 20. Additionally, extra taxes can be paid before February 1 of the following year of the income year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Denmark
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0/27/22
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
27/27/22
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Denmark
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)
Denmark
Luxembourg
Composite Effective Average Tax Rate:
20.36%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
14.22%
Composite Effective Marginal Tax Rate:
18.09%
