Corporate Tax Comparison

Switzerland vs Luxembourg

Compare Switzerland and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.

Published — Switzerland: 2/14/2024 · Luxembourg: 2/14/2024 · Time of Update — Switzerland: 4/01/2026 · Luxembourg: 9/26/2026

Base Country/Region

Compare Country/Region

Compare Corporate Tax

Switzerland

Luxembourg

Basic Corporate Tax Comparison

PwC World Tax Summary OECD Statistics

Published — Switzerland: 2/14/2024 · Luxembourg: 2/14/2024 · Time of Update — Switzerland: 4/01/2026 · Luxembourg: 9/26/2026

Corporate Income Tax (CIT)

Switzerland

Luxembourg

General CIT Rate:

Federal corporate income tax: after-tax profit of 8.5% (pre-tax profit of 7.83%). State and local CIT is added to federal CIT, resulting in an overall effective tax rate between 11.9% and 21.0%, depending on the company's domicile in Switzerland.

General CIT Rate:

23.87% (CIT, employment-fund surcharge, and municipal business tax [Luxembourg City, from tax year 2025])

CIT Return Due Date:

The due date varies from canton to canton (usually between six and nine months after the close of the business year).

CIT Return Due Date:

December 31 of the following year.

CIT Payment Due Date:

The due date varies from canton to canton.

CIT Payment Due Date:

Within one month of receiving the tax assessment notice.

CIT Estimated Payment Due Date:

Federal CIT is usually due by 31 March of the following tax period. At the cantonal level, the due dates vary from canton to canton.

CIT Estimated Payment Due Date:

Quarterly installment payment.

Withholding Tax (WHT)

Switzerland

Luxembourg

Resident Withholding Tax (Dividend/Interest/Royalty):

0%-35% / 0%-35% / 0

Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

0%-35% / 0%-35% / 0

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

15/0/0

Value-Added Tax (VAT)

Switzerland

Luxembourg

General VAT Rate:

8.1%

General VAT Rate:

Learn More Value-Added Tax (VAT)

Capital Gain Tax (CGT)

Switzerland

Luxembourg

General Capital Gain Tax Rate:

The effective tax rate (ETR) depends on the company’s location of corporate residency in Switzerland. The ETR of a company resident at the capital cities of the Swiss cantons varies between 11.9% and 20.5%. Exceptions to be considered relate to the participation relief and capital gains on real estate.

General Capital Gain Tax Rate:

Taxed at the normal corporate income tax rates, except gains on a qualifying participation (at least 10% or an acquisition price of EUR 6,000,000, held at least 12 months), which are exempt.

Effective Tax Rate (ETR)

Switzerland

Luxembourg

Composite Effective Average Tax Rate:

17.1%

Composite Effective Average Tax Rate:

23.24%

Composite Effective Marginal Tax Rate:

10.4%

Composite Effective Marginal Tax Rate:

18.09%

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