United Arab Emirates vs Luxembourg
Corporate Tax Comparison
Time of Update: United Arab Emirates: 4/01/2026 / Luxembourg: 4/05/2026
Compare United Arab Emirates and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
United Arab Emirates vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
United Arab Emirates
Luxembourg
General CIT Rate:
The standard corporate income tax rate in the UAE is set at 9% on taxable income above AED 375,000.
The corporate income tax rate is set at 0% for taxable income not exceeding 375,000 UAE dirham (AED) or qualifying income of a Qualifying Free Zone Person (QFZP).*
The corporate income tax rate is set at 0% for taxable income not exceeding 375,000 UAE dirham (AED) or qualifying income of a Qualifying Free Zone Person (QFZP).*
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
According to the UAE CT law, all taxable persons must submit the company tax return within nine months after the end of the relevant tax period.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
According to the UAE CT law, all taxable persons must pay corporate tax within nine months after the end of the relevant tax period.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
According to the UAE CT law, there is no need to estimate/prepay taxes.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
United Arab Emirates
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0%
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0%
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
United Arab Emirates
Luxembourg
General Capital Gain Tax Rate:
Individuals: Generally, there is no personal capital gains tax, as the UAE does not levy personal income tax.
Companies: Capital gains are generally treated under corporate tax rules and typically fall within the scope of corporate tax, unless special rules such as the participation exemption or QFZP (Qualifying Free Zone Person) apply.
Companies: Capital gains are generally treated under corporate tax rules and typically fall within the scope of corporate tax, unless special rules such as the participation exemption or QFZP (Qualifying Free Zone Person) apply.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
United Arab Emirates
Luxembourg
Composite Effective Average Tax Rate:
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
Composite Effective Marginal Tax Rate:
18.09%
