Luxembourg vs Marshall Islands
Corporate Tax Comparison
Time of Update: Luxembourg: 4/05/2026 / Marshall Islands: 4/06/2026
Compare Luxembourg and Marshall Islands corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Luxembourg vs Marshall Islands Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Luxembourg
Marshall Islands
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
General CIT Rate:
Within 10,000 US dollars, a corporate income tax of 80 US dollars is collected. Any excess amount is subject to a 3% tax. However, Non-resident companies not conducting business within the Marshall Islands are exempt from corporate income tax. This makes the jurisdiction attractive for offshore business activities as they do not have to pay taxes on income earned outside the Marshall Islands. https://internationalwealth.info/en/offshore-taxes/everything-you-need-to-know-about-the-tax-system-in-the-marshall-islands/
CIT Return Due Date:
December 31 of the following year.
CIT Return Due Date:
N/A for non resident companies
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Payment Due Date:
N/A for non resident companies
CIT Estimated Payment Due Date:
Quarterly installment payment.
CIT Estimated Payment Due Date:
N/A for non resident companies
Withholding Tax (WHT)
Luxembourg
Marshall Islands
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0%
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0%
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Luxembourg
Marshall Islands
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
General Capital Gain Tax Rate:
0%
Effective Tax Rate (ETR)
Luxembourg
Marshall Islands
Composite Effective Average Tax Rate:
23.24%
Composite Effective Average Tax Rate:
Composite Effective Marginal Tax Rate:
18.09%
Composite Effective Marginal Tax Rate:
