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Practical Aspect of Luxembourg Companies
S.A.: EUR 31.000 (released at min. 25%)
Sarl: EUR 12.500 (released at 100%)
SICAR : EUR 1.000.000 (to reach within max 12 months)
FIS : EUR 1.250.000 (to reach within max 12 months)
Incorporation Authorization:
In Luxembourg, an Incorporation Authorization can be granted for any commercial or industrial activity subordinated to justification, as soon as the person carrying the authorization has a deep knowledge in company management as well as an adequate qualification. Verifications are made regarding the applicant honorability and the effective and permanent future direction starting from a fix establishment on the Luxembourg territory.
IRC rate :
Companies with a net annual revenue < EUR 15.000: 20%
Companies with a net annual revenue > EUR 15.000: 22,47%
ICC rate :
The rates are function of the company’s town of incorporation and range from 6% to 10.5%. For Luxembourg City it is 6.75%.
The effective tax rate for companies incorporated in Luxembourg City is:
(IRC+ICC)= 22,47% + 6,75% = 29,22% (since January 1st, 2013).
IF :
Wealth tax computed on the net asset value as of January 1st (deduction of particular assets possible under conditions). The tax rate is 0.5%.
The VAT tax in Luxembourg is 15% for the service providers.
Distribution :
Interests :
Withholding tax for interests payments from Luxco:
- To a joint-stock company: 0%
- To a non Luxembourg physical person : 20% (Savings directive)
Dividends :
The withholding tax on dividends is 15%.
Exemptions are possible if :
If the beneficiary is a joint-stock company fully taxable whose participation in the company reaches at least for 10% of the capital or EUR 1.200.000,- during an uninterrupted detention for at least 12 months at the moment of the distribution (or detention engagement for an uninterrupted period of at least 12 months). Convention for the Avoidance of Double Taxation.