Luxembourg is a small country in Western Europe and it comprises of two principal regions: Oesling in the north part and Gutland in the south. Due to its central location in Europe, it always had a great strategic importance for numerous other countries that established commercial or financial business relationships with Luxembourg.
Luxembourg has a policy of maintaining relatively low income taxes and social insurance costs. The total corporate tax is moderate, in comparison with other European countries. Companies that are doing business in Luxembourg are subject to corporate income tax, municipal business tax, minimum tax, net worth tax, Chamber of Commerce contribution and VAT. However, there is no branch tax and no excess profits tax.