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China vs Luxembourg: tax rates compared
Luxembourg's income tax rate is 0.8pp higher than China's (45.8% vs 45%). The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CN | LU | Difference |
|---|---|---|---|
| Income Tax | 45% | 45.8% | LU +0.8 pp |
| Corporate Tax | 25% | 23.9% | CN +1.1 pp |
| VAT | 13% | 17% | LU +4 pplargest gap |
| Capital Gains Tax | 0% | 0% | match |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| China | 45% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Taxes on personal income) · as of 2025-12-31 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −0.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| China | 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 | China higher |
China'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 |
|---|---|---|
| China | 13% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Corporate, Other taxes) · as of 2025-12-31 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −4 pp | Luxembourg higher |
Luxembourg's VAT rate is 4pp higher than China's (17% vs 13%). The 181-country average is 15%: China sits below it, Luxembourg sits above it. China's figure is dated 2025-12-31 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: State Taxation Administration Shanxi Provincial Tax Service — Caishuizi [1998] No. 61 (财税字〔1998〕61号) · as of 1998-03-30 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
China's capital gains tax rate is identical to Luxembourg's — both sit at 0%. The 175-country average is 10.3%: both sit below it. China's figure is dated 1998-03-30 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Other taxes) · as of 2025-12-31 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
China's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it. China's figure is dated 2025-12-31 and Luxembourg's 2026-01-13, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax.