LU · EuropePH · Asia
Luxembourg vs Philippines: tax rates compared
Luxembourg's income tax rate is 10.8pp higher than Philippines's (45.8% vs 35%). The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Philippines's 2026-07-02, 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 | PH | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 35% | LU +10.8 pplargest gap |
| Corporate Tax | 23.9% | 25% | PH +1.1 pp |
| VAT | 17% | 12% | LU +5 pp |
| Capital Gains Tax | 0% | 0.6% | PH +0.6 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 |
| Philippines | 35% | Source: PWC Worldwide Tax Summaries — Philippines (Individual, Taxes on personal income) · as of 2026-07-02 |
| 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 |
| Philippines | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.1 pp | Philippines higher |
Philippines'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 |
| Philippines | 12% | Source: PWC Worldwide Tax Summaries — Philippines (Corporate, Other taxes) · as of 2026-01-12 |
| Difference | +5 pp | Luxembourg higher |
Luxembourg's VAT rate is 5pp higher than Philippines's (17% vs 12%). The 181-country average is 15%: Luxembourg sits above it, Philippines sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Philippines | 0.6% | Source: PWC Worldwide Tax Summaries — Philippines (Individual, Income determination) · as of 2026-07-02 |
| Difference | −0.6 pp | Philippines higher |
Philippines's capital gains tax rate is 0.6pp higher than Luxembourg's (0.6% 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 |
| Philippines | 0% | Source: PWC Worldwide Tax Summaries — Philippines (Net wealth/worth tax rates) · as of 2026-01-12 |
| Difference | 0 pp | displayed rates match |
Luxembourg's wealth tax rate is identical to Philippines's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.