Japan vs Luxembourg
Corporate Tax Comparison
Time of Update: Japan: 4/03/2026 / Luxembourg: 4/05/2026
Compare Japan and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Japan vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Japan
Luxembourg
General CIT Rate:
23.2
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
Within two months after the end of the company's fiscal year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
Within two months after the end of the company's fiscal year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Within two months after the end of the sixth month of the company's accounting period.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Japan
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
20/20/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Japan
Luxembourg
General Capital Gain Tax Rate:
Capital gains are subject to 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)
Japan
Luxembourg
Composite Effective Average Tax Rate:
28.36
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
29.26
Composite Effective Marginal Tax Rate:
18.09%
