LU · EuropePK · Asia
Luxembourg vs Pakistan: tax rates compared
Between the two, Luxembourg's income tax rate (45.8%) tops Pakistan's (35%) by 10.8pp. The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Pakistan's 2026-01-19, 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 | PK | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 35% | LU +10.8 pp |
| Corporate Tax | 23.9% | 29% | PK +5.1 pp |
| VAT | 17% | 18% | PK +1 pp |
| Capital Gains Tax | 0% | 15% | PK +15 pplargest gap |
| 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 |
| Pakistan | 35% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19 |
| Difference | +10.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Pakistan | 29% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5.1 pp | Pakistan higher |
Between the two, Pakistan's corporate tax rate (29%) tops Luxembourg's (23.9%) by 5.1pp. 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 |
| Pakistan | 18% | Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19 |
| Difference | −1 pp | Pakistan higher |
Between the two, Pakistan's VAT rate (18%) tops Luxembourg's (17%) by 1pp. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Pakistan | 15% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19 |
| Difference | −15 pp | Pakistan higher |
Between the two, Pakistan's capital gains tax rate (15%) tops Luxembourg's (0%) by 15pp. The 175-country average is 10.3%: Luxembourg sits below it, Pakistan sits above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Pakistan | 0% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Luxembourg and Pakistan both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.