LU · EuropeTW · Asia

Luxembourg vs Taiwan: tax rates compared

Luxembourg's income tax rate is 5.8pp higher than Taiwan's (45.8% vs 40%). The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Taiwan's 2026-01-12, 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

0102030405060Income40%45.8%Corporate20%23.9%VAT5%17%Capital Gains0%Wealth Tax0%
five shared taxes, side by side
Tax LU TWDifference
Income Tax45.8%40%LU +5.8 pp
Corporate Tax23.9%20%LU +3.9 pp
VAT17%5%LU +12 pplargest gap
Capital Gains Tax0%0%match
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Luxembourg45.8%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Taiwan40%Source: PWC Worldwide Tax Summaries — Taiwan (Individual, Taxes on personal income) · as of 2026-01-12
Difference+5.8 ppLuxembourg higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Luxembourg23.9%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Taiwan20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+3.9 ppLuxembourg higher

Luxembourg's corporate tax rate is 3.9pp higher than Taiwan's (23.9% vs 20%). The 201-country average is 22.6%: Luxembourg sits above it, Taiwan sits below it.

VAT

VAT, side by side
CountryRateSource
Luxembourg17%Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13
Taiwan5%Source: PWC Worldwide Tax Summaries — Taiwan (Corporate, Other taxes) · as of 2026-01-12
Difference+12 ppLuxembourg higher

Luxembourg's VAT rate is 12pp higher than Taiwan's (17% vs 5%). The 181-country average is 15%: Luxembourg sits above it, Taiwan sits below it.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13
Taiwan0%Source: PWC Worldwide Tax Summaries — Taiwan (Individual, Income determination / Capital gains tax rates quick chart) · as of 2026-01-12
Difference0 ppdisplayed rates match

Luxembourg's capital gains tax rate is identical to Taiwan's — both sit at 0%. The 175-country average is 10.3%: both sit below it.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Taiwan0%Source: PWC Worldwide Tax Summaries — Taiwan (Individual, Other taxes) · as of 2026-01-12
Difference0 ppdisplayed rates match

Luxembourg's wealth tax rate is identical to Taiwan's — both sit at 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Crypto Tax.