Israel vs Luxembourg
Corporate Tax Comparison
Time of Update: Israel: 4/04/2026 / Luxembourg: 4/05/2026
Compare Israel and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Israel vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Israel
Luxembourg
General CIT Rate:
23
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Israel
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Israel
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)
Israel
Luxembourg
Composite Effective Average Tax Rate:
21.47%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
16.63%
Composite Effective Marginal Tax Rate:
18.09%
