South Korea vs Luxembourg
Corporate Tax Comparison
Time of Update: South Korea: 4/04/2026 / Luxembourg: 4/05/2026
Compare South Korea and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
South Korea vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
South Korea
Luxembourg
General CIT Rate:
Progressive: 10% (up to 200M KRW), 20% (200M-20B KRW), 22% (20B-300B KRW), 25% (over 300B KRW)
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
Mid-term tax returns: within two months from the end of the six-month period; annual tax returns: within three months from the end of the fiscal year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
The submission of the declaration form (instalment payments are allowed in the case of elections).
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
N/A
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
South Korea
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
South Korea
Luxembourg
General Capital Gain Tax Rate:
25 (the same as the normal CIT rate for corporations over 300B KRW taxable income)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
South Korea
Luxembourg
Composite Effective Average Tax Rate:
24.87%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
22.0%
Composite Effective Marginal Tax Rate:
18.09%
