COMPARISON BETWEEN ESTONIA, LUXEMBURG AND SWITZERLAND


TAX RATESLUXEMBOURGSWITZERLANDESTONIA
Corporate income tax rate21 %8,5% (federal) (7,83% effective)20%
Branch tax rate21%8,5% (federal) (7,83% effective)No
Capital gains tax rate0% / 21%0% / 8,5% (federal) (7,83% effective)No (taxed only where there is a profit distribution)
BasisWorldwide incomeWorldwide incomeWorldwide income
Participation exemptionYesYesThe corporate income tax will not be charged on redistribution of dividends, if the underlying dividends are received from a subsidiary that is tax resident in an EEA member state or Switzerland and the Estonian parent holds at least 10% of the shares or votes of the parent company.
Loss reliefIndefinite7 yearsUnlimited
CarryforewardNoNoNo
Carryback
Double taxation reliefYesYesYes
Tax concolidationYesNoYes
Transfer pricing rulesYesNoYes
Thin capitalization rulesNo (other than for the holding of participation)No, but safe harbor rules applyNo
Controlled foreign company rulesNoNoNo (regime applies only to individuals)
Tax yearCalendar year or fiscal yearFinancial yearCalendar year
Advance payment of taxYesNoNo
Return due date31 MayVariesMonthly bases
Dividends0% / 15%35%0%
Interest0% / (15% in certain cases)0% / 35%0%
Royalties0%0% / 10%
Branch remittance tax0%0%0%
Capital taxNo0,001% – 0,5%No
Municipal business tax6,75% – 12%Not availableNo
Employment surcharge7%1,0-2,2%0,8% – 1,6%
Net worth tax0,5% Up to 0,5%No
Min net worth taxVariesNoNo
Chamber of Commerce contributions0,025% – 0,2%No
Social security contributions12,42% – 15,2%0,25% – 4,2%33%
Real estate tax0,7% – 1%Cantonal level tax 0,1% – 2,5%
Transfer tax6% (+1% transcription tax)0,15% / 0,3%No
Specific registration duty0,6% or 6% (+1% transcription tax)16 000 € for VAT
Stamp taxVaries1% / 2,5% / 5%Varies
VAT17% or 14%, 8%, 3%, 0%8%20% / 9%