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.
As far as taxation goes, Luxembourg has an overall moderate tax rate in comparison with other European countries. There are 4 main categories of taxes: corporate taxes, withholding taxes, indirect taxes and taxes on individuals as they are regulated by the current tax legislation.