BT · AsiaLU · Europe
Bhutan vs Luxembourg: tax rates compared
Luxembourg's income tax rate is 15.8pp higher than Bhutan's (45.8% vs 30%). The 200-country average is 28%: both sit above it. Bhutan's figure is dated 2026-07-20 and Luxembourg's 2025-01-01, so the two rates come from different data vintages.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | BT | LU | Difference |
|---|---|---|---|
| Income Tax | 30% | 45.8% | LU +15.8 pplargest gap |
| Corporate Tax | 25% | 23.9% | BT +1.1 pp |
| VAT | 5% | 17% | LU +12 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 30% | Source: Bhutan Department of Revenue and Customs, Ministry of Finance — Personal Income Tax (PIT) · as of 2026-07-20 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −15.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +1.1 pp | Bhutan higher |
Bhutan's corporate tax rate is 1.1pp higher than Luxembourg's (25% vs 23.9%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Bhutan | 5% | Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Bhutan · as of 2026-01-01 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −12 pp | Luxembourg higher |
Luxembourg's VAT rate is 12pp higher than Bhutan's (17% vs 5%). The 181-country average is 15%: Bhutan sits below it, Luxembourg sits above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 0% | Source: Bhutan Department of Revenue and Customs, Ministry of Finance · as of 2026-07-18 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Bhutan's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.