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Philippines vs Luxembourg Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Philippines35%Lower
Luxembourg42%
Corporate Tax
Philippines25%
Luxembourg23.9%Lower
Capital Gains
Philippines15%Lower
Luxembourg21%
VAT / Sales Tax
Philippines12%Lower
Luxembourg17%
| Category | Philippines | Luxembourg |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 35% | 42% |
| Corporate Tax | 25% | 23.9% |
| Capital Gains | 15% | 21% |
| VAT / Sales Tax | 12% | 17% |
| Crypto Tax | No | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 43 | 85 |
| Currency | PHP | EUR |
The bottom line: Philippines vs Luxembourg
Philippines has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Philippines runs a progressive tax system, while Luxembourg uses a progressive one. On crypto, Philippines is the more favourable — it does not tax cryptocurrency gains. Luxembourg has the wider tax-treaty network (85 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Philippines is lower (35% vs 42%)
- Corporate tax: Luxembourg is lower (25% vs 23.9%)
- Capital gains tax: Philippines is lower (15% vs 21%)
- VAT / sales tax: Philippines is lower (12% vs 17%)