WorldTax Compareโ† All Comparisons

Luxembourg vs South Korea
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg
vs
๐Ÿ‡ฐ๐Ÿ‡ท South Korea
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“42%
Tax reform package continuing; thresholds indexed
No change
6โ€“45%
Stable; political debate on top rate reduction
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
3โ€“17%
Standard 17% maintained
No change
10%
Standard 10% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~24.94%
Global minimum tax fully embedded in domestic law
No change
9โ€“24%
Competitiveness discussions vs global peers
No change
Capital Gains Tax
Capital Gains Tax
0โ€“42%
No major reform
No change
0โ€“45%
Financial income taxation reform continuing
No change
Social Security & Payroll
Social Security / Payroll
~27%
Pension reform discussions; contribution structure stable
No change
~18.5%
Contribution rates stable; pension reform discussion
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg โ€” Municipal Business & Property Taxes

Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%โ€“400% = effective 6โ€“10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.

๐Ÿ‡ฐ๐Ÿ‡ท South Korea โ€” Local Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Luxembourg vs South Korea: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฐ๐Ÿ‡ท South Korea has a higher top income tax rate (0โ€“42% vs 6โ€“45%). ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Luxembourg has a higher consumption tax (3โ€“17% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฐ๐Ÿ‡ท South Korea offers a lower corporate rate (24% vs 24.94%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg taxes investment gains at a lower rate (42% vs 45%), benefiting investors.

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