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Luxembourg vs Nepal: tax rates compared
Luxembourg's income tax rate is 15.8pp higher than Nepal's (45.8% vs 30%). The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Nepal's 2026-01-02, so the two rates come from different data vintages.
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 | LU | NP | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 30% | LU +15.8 pplargest gap |
| Corporate Tax | 23.9% | 25% | NP +1.1 pp |
| VAT | 17% | 13% | LU +4 pp |
| Capital Gains Tax | 0% | 5% | NP +5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Nepal | 30% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Schedule 1 (clause 1) · as of 2026-01-02 |
| Difference | +15.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Nepal | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.1 pp | Nepal higher |
Nepal'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 |
|---|---|---|
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Nepal | 13% | Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01 |
| Difference | +4 pp | Luxembourg higher |
Luxembourg's VAT rate is 4pp higher than Nepal's (17% vs 13%). The 181-country average is 15%: Luxembourg sits above it, Nepal sits below it. Luxembourg's figure is dated 2026-01-13 and Nepal's 2005-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Nepal | 5% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Section 95Ka(2)(a) · as of 2026-01-02 |
| Difference | −5 pp | Nepal higher |
Nepal's capital gains tax rate is 5pp higher than Luxembourg's (5% vs 0%). The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Nepal | 0% | Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Luxembourg's wealth tax rate is identical to Nepal's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.